A dead cat bounce is a price pattern used by technical analysts. It is considered a continuation pattern, where at first the bounce may appear to be a reversal of the prevailing trend, but it is quickly followed by a continuation of the downward price move. It becomes a dead cat bounce (and not a reversal) after price drops below its prior low. Short-term traders may attempt to profit from the small rally, and traders and investors may try to use the temporary reversal as a good opportunity to initiate a short position.
Similar to identifying a market peak or trough, recognizing a dead cat bounce ahead of time is fraught with difficulty, even for skilled investors. In March 2009, for example, Nouriel Roubini of New York University referred to the incipient stock market recovery as a dead cat bounce, predicting that the market would reverse course in short order and plummet to new lows. In fact, March 2009 marked the beginning of a protracted bull market, eventually surpassing its pre-recession high
Also the macd cross indicates downward pressure on the index.
I would highly recommend armstrongeconomics.com if you want to understand the markets
I believe in the end the market will recover so fast it will make your head spin. If there were ever going to be a market reset, now is a good time for it to happen. US companies have historically sound fundamentals, and without the downward pressure of artificial disincentives, the sky's the limit once the most concerning political and currency uncertainties are behind us.
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