The current market sentiment shows some subtle characteristics:

When prices pull back, I notice many bears begin to get excited, while bulls remain silent. This may indicate that bullish positions are not heavy, so there won't be substantial conflicts. On the other hand, bears, who have been short for a long time and have been stopped out, become unusually excited when they see hope. Although this sentiment seems favorable to bears, it actually induces some liquidity to chase shorts at low levels, thereby gradually increasing the liquidity of high-level shorts.

If prices cannot break down and form a new breakout trend, the upward momentum will gradually strengthen as prices rebound. This is similar to the situation on Monday and Tuesday when bulls were highly excited. At that time, a large number of bullish remarks led to a rapid accumulation of bullish liquidity below the price, causing the bullish trend to pause and resulting in a clear liquidation at the lower end of a small range.

I believe that most trend movements start from low volatility and low volume conditions. If the market shows confident price action, I would be cautious, especially before the market has moved out of specific structural breakdown behaviors. #美国PPI数据来袭