The floor is close, but it hasn't arrived yet
The market seems to be in a deep correction phase, rather than a structural collapse. The overselling is evident, fear is extreme, and the sentiment indicators reflect overflowing pessimism. However, the final capitulation has not yet occurred.
When it comes, we will likely see a violent move in the opposite direction. Until then, the key is to stay alert and observe the signs of exhaustion in the decline. History has shown that moments of greatest pessimism are often the best buying opportunities. The challenge is to identify the precise moment when the tide turns.
The market seems to be in a deep correction phase, rather than a structural collapse. The overselling is evident, fear is extreme, and the sentiment indicators reflect overflowing pessimism. However, the final capitulation has not yet occurred.
When it comes, we will likely see a violent move in the opposite direction. Until then, the key is to stay alert and observe the signs of exhaustion in the decline. History has shown that moments of greatest pessimism are often the best buying opportunities. The challenge is to identify the precise moment when the tide turns.
