Shorts closed on the basis of a squeeze to the upside.
We have fallen almost aaround 20% from ATH, which makes the case for a spike to the upside.
The sanctions on russia will and already are giving higher energy prices and likely to stay high for some period. This means households would have less disposable income and therefore lower consumption, which gives the FED an incentive (excuse) to not moving as quickly as they said they would.
The FED will likely signal that they need to asses the situation as it evolves and by then take the decision, which is an indication of a not so agressive policy move. This will likely give an upside to the market for a short period before falling again to correctional levels.
plus alot of dip buying is going on now. people who have sold russian assets are likely rebalancing their portofolio right now and taking the sanctions into consideration. This will move money to the US and european market. but most likely to the US market.
for now long to 14.500 - 15.000 level.
We have fallen almost aaround 20% from ATH, which makes the case for a spike to the upside.
The sanctions on russia will and already are giving higher energy prices and likely to stay high for some period. This means households would have less disposable income and therefore lower consumption, which gives the FED an incentive (excuse) to not moving as quickly as they said they would.
The FED will likely signal that they need to asses the situation as it evolves and by then take the decision, which is an indication of a not so agressive policy move. This will likely give an upside to the market for a short period before falling again to correctional levels.
plus alot of dip buying is going on now. people who have sold russian assets are likely rebalancing their portofolio right now and taking the sanctions into consideration. This will move money to the US and european market. but most likely to the US market.
for now long to 14.500 - 15.000 level.