Those who are on the sidelines will soon start saying that these three rallies are the same, but clearly they’re not.
The two previous rallies left most of the lows unbroken, making participants believe they were seeing higher prices before rapidly reversing the entire move.
This rally came after more than two months of sideways ranges, leaving most participants on the sidelines and expecting lower prices, while liquidating $6 billion in shorts during the bullish move.
This time, the move won’t reverse.
This is a re-accumulation before another expansion.
Historically, a confirmed recovery of the 21-period exponential moving average (EMA) within 2 months after trading below it has marked the end of the bear market.