Rangebound markets

Obligatory: this is not financial advice and I am not a financial advisor.

S&P

The S&P held VWAP support for a week but eventually fell down to the bottom bands. These have historically proven to be strong support but even a strong support can be broken over time.

One thing that’s been on my mind is this fractal from 2020. Structure seems to fit the bill. We’ll know next week if it’s right or wrong.

Until then we’ve got a range bound market. Personally I’m interested in conservatively DCA’ing more into the market but if this breaks I think it could get real ugly.

Decred

Decred still just ranging, waiting for the chain of command to moon.  10/80 gets activated in about a week though which could potentially spark some decorrelation in the nearish future.

Conclusion

I just can’t shake the feeling like the market is overreacting but the market can remain irrational longer than I can remain solvent. That fractal is what I’m watching out for. I’m going to continue to conservatively DCA into the market further but I wouldn’t be at all surprised to see the markets continue their hemorrhaging.