๐ Fear & Greed Index Slips Into Fear Zone โ A Deeper
Pullback Incoming?
The Fear and Greed Index has returned to the fear zone, signaling rising uncertainty in the market. If Monday opens with a gap down and closes at session lows, this could accelerate the decline into extreme fear territoryโa level often associated with market capitulation. However, historical trends suggest that such conditions frequently precede a turnaround, making Tuesday a potential reversal day, especially if it opens with a lower low.
๐ Market Sentiment & Key Considerations
Fear Escalation: A deeper drop into extreme fear could indicate oversold conditions, setting the stage for a relief bounce.
Technical Reversal Watch: A lower low on Tuesday followed by a strong rebound could confirm a classic turnaround Tuesday scenario.
Macroeconomic Factors: The market remains reactive to tariffs, rate hikes, and recession concerns, all of which could dictate near-term volatility.
๐ Strategic Outlook Moving Forward
Smart traders will be watching for signs of stabilization post-selloff. If the fear-driven decline intensifies, contrarian investors may start positioning for a potential recovery. Keeping a close eye on key support levels and volatility indicators (VIX) will be essential for navigating this turbulent period.
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