Market Crash Had Long-Standing Warnings: The Game of Emotion and Liquidity
12 hours ago, the market showed signs of a crash, and this signal was accurately captured by me.
Although my analysis may not have received widespread attention, it does not diminish its value. Previously, I had predicted a short-term bullish sentiment and profited when the market structure changed. However, when optimism reached its peak, the market stalled—this was my signal to exit.
The reason is simple: liquidity is the true driving force of the market. Without substantial buying support, prices struggle to maintain upward momentum. The market attempted to break through key resistance levels but ultimately failed. The temporary boost in sentiment due to CPI data was short-lived, as institutional funds did not genuinely enter the market, and expectations for interest rate cuts remain unclear—such a "false prosperity" is destined to be unsustainable.
Core Logic:
Overheating sentiment is often a turning signal—when everyone is bullish, the market is more likely to lose momentum.
Liquidity determines trends—without large capital pushing, any short-term speculation is merely fleeting.
A breakthrough of key resistance levels requires genuine buying—otherwise, a pullback after a spike is just a matter of time.
Are you stuck? When to buy the dip? As always, if you're confused and unsure of what to do, comment by clicking on the profile picture. I need fans, and you need references.
