Dow Jones | TAThe action that happened between 5-August through 26-August, is a classic pull-back. The last candle ended in a bearish note. Yesterday's session works as bearish confirmation based on candlestick reading. 2-3 additional red candles would give further strength to the bearish side, as this would still be considered early since only one session closed red.
The move that is developing now, starting after the 26-Aug. high and with confirmation yesterday, is the continuation of the move that started 18-July 2024. The pull-back is a normal market reaction as traders look for direction, not knowing what to expect. Everything is clear now. The FED will cut rates.
Cutting interest rates is the time to take profits. So, prepare for the drop.
A major correction tends to precede the change in the FEDs policies. After the correction we tend to experience long-term growth due to easier access to credit; some people call it "easy money."
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