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Elliott Wave: Is the Dollar's Bear Run Nearing Exhaustion? Watch These Signs For Stabilization - ForexAnalytix - Blog
The dollar index has recently seen a sharp decline, losing more than 10% from the January 2025 highs, which is a significant move in a relatively short period. Looking at the current price action, it's important to consider sentiment; when it reaches an extreme, a shift is often near. The chart below shows the current drop is coming from the same black resistance line that triggered a reversal at the end of 2024. Back then, sentiment was heavily bearish—especially on EURUSD—and a reversal followed. It now appears sentiment may again be reaching a similar extreme.
Elliott Wave Analysis: Will SP500 Stay Trapped In Range? - ForexAnalytix - Blog
Stock market rebound over the last two weeks started after Trump decided to put some of the tariffs on a 90-day pause, and most recent annoucmenet talks with China have already begun. If some of the recent tariffs are also removed by China, this would be very positive for sentiment moving forward, as both countries seem to be working toward a deal that could benefit both sides.What's interesting is that the S&P 500 bottomed right at the trendline support connected from the 2022 lows, and this happened with extreme volume down there, while VIX and fear indicators also hit extreme levels. The market was heavily buying puts at that time, and usually when sentiment is at extremes, that’s when markets can reverse—so I’m not surprised to see this strong bounce holding for the last two weeks.