If you were correctly positioned for this outcome, congratulations, but don`t get overly excited about doing a victory lap as there is going to be market volatility ahead. During these episodes of unexpected market shocks, here is what I am watching for:
- Technical: Watch for logical areas of technical support
- Sentiment: Signs of panic and oversold reading that signal a bottom
- Macro: Either official intervention or policy responses that could rip a short`s face off
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