If we've reached a market top for the time being (looking back over approximately 10 years) there's nice confluence between fib retracement levels, volume nodes, and some key support/resistance zones I've drawn.
A market pullback to the 0.5 or 0.618 fib level wouldn't surprise me.
Alternatively, if we're just seeing a market pause (accumulation), we could see the market rise some more before a major pullback. In that case, the 0.618 as I've drawn it could move up to where I currently have the 0.5 fib level. A retracement to that area would still make sense, imo.
I don't like seeing price rise while MFI is dropping (Bearish Divergence). It means money is leaving the system and can signal a price reversal. I also don't like current inflation, hawkish fed policy, and excessive money printing in the US. That's a setup for a late-1970s era situation.
This is all purely macroeconomic speculation, of course.
Have fun, and be safe.
A market pullback to the 0.5 or 0.618 fib level wouldn't surprise me.
Alternatively, if we're just seeing a market pause (accumulation), we could see the market rise some more before a major pullback. In that case, the 0.618 as I've drawn it could move up to where I currently have the 0.5 fib level. A retracement to that area would still make sense, imo.
I don't like seeing price rise while MFI is dropping (Bearish Divergence). It means money is leaving the system and can signal a price reversal. I also don't like current inflation, hawkish fed policy, and excessive money printing in the US. That's a setup for a late-1970s era situation.
This is all purely macroeconomic speculation, of course.
Have fun, and be safe.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.