Notice how the price bars in DreamTai turned RED a few days before.
Now the market is at a very important level, which is the 50 day moving average (shown by pink line in DreamTai)
Surprisingly, Nasdaq remained strong. The QQQQ closed at the 20 day moving average support level (Blue line in DreamTai)
One possible scenario is that the market can crash and break down below the 50 day moving average level, at which stage the stock market is officially BEARISH.
Another scenario is that the market will use the 50 day moving average as support and rise up again.
Yet another scenario is that the market will just chop around the moving averages for some time till it decides the next course to take.
Let us wait and see what happens next.
It is safer not to enter any long positions and to tighten the stops on the existing positions.
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