Over a month ago in my tg channel I mentioned that a similar setup to the March/April double bottoms was forming, and that those lows ended up being the base for the leg higher. I still believe this type of structure can repeat.
Whether that comes in the form of a higher low or a lower low doesn’t really matter. At the end of the day, market makers can do whatever they want in the short term.
Right now we’re clearly stuck in a consolidation phase. This kind of environment is brutal to trade and slowly drains liquidity from traders, I know it’s frustrating. But historically, periods like this don’t last forever. When this range finally breaks, the move is usually violent, and I still believe the next major move will be to the upside.
I also no longer believe in the so-called “4-year cycle.” Markets are far too institutionalised and mainstream now to expect identical bull and bear cycles to repeat forever. If you think markets will stay locked into the same cycle for eternity, all it takes is a look at the long-term history of stocks, gold, and other commodities to see why that doesn’t hold up.
The main takeaway: don’t be discouraged by the past couple of months. Even if we need one more flush lower, conditions will improve. Patience here will be rewarded.