Market Update: Stabilization Process Continues Ahead of Expected Bullish Transition
$S&P 500(.SPX)$ $SPDR S&P 500 ETF Trust(SPY)$ $NASDAQ 100(NDX)$ $Invesco QQQ(QQQ)$ $Dow Jones(.DJI)$ $iShares Russell 2000 ETF(IWM)$
The U.S. stock market experienced continued volatility on Tuesday, ultimately closing with a relatively strong decline after pulling back toward lower support levels during the session.
Although the market closed lower, the current price action continues to reflect a constructive stabilization process within buying and selling flows, and overall movement remains within our previously anticipated range.
We expect this stabilization pattern to continue throughout the remainder of this week. In the near term, conditions currently suggest a high probability that the market may rebound higher again during today’s session.
However, even if a short-term rebound occurs today, selling pressure is expected to strengthen again on Thursday. As a result, the broader market is likely to continue moving within a range-bound structure as distorted buying and selling flows gradually normalize and stabilize.
Looking ahead, we continue to expect the daily trend structure to transition into the Bullish Zone beginning early next week, allowing the market to re-enter a more sustainable upward trend.
Furthermore, consistent with our previous outlook, we expect the weekly trend structure to begin transitioning into an uptrend either next week or, at the latest, during the final week of June.
At this stage, we are maintaining our existing broader outlook without change.
Importantly, the current stabilization process unfolding this week may represent a highly meaningful strategic opportunity. As the market approaches the end of June, conditions are increasingly aligning toward the potential emergence of both daily and weekly bullish trend structures.
For this reason, we believe the current period may serve as an important window for gradually building positioning ahead of the anticipated broader upward transition.
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