FTSE has already broken lower – But will the us follow? [Video]

FTSE Has Already Broken Lower... But Will the US Follow?

That's the question I've been wrestling with for the past few weeks.

The FTSE has already made its move to the downside, but the US markets have proved far more resilient.

The key now isn't just technical analysis.

It's market sentiment.

If buyers become frustrated from repeatedly buying a market that's going nowhere because the S&P 500 remains trapped in a sideways pattern, then a correction becomes much more likely.

We're also entering what traders have always called the "Silly Summer Season." Liquidity drops, volumes thin out, and markets can become far more volatile than normal.

Could we see a correction?

Absolutely.

Do I see a crash?

No.

Well... that depends on what you call a crash.

For me, a crash is something like 1987, 2001, 2008 or 2020.

Those were genuine crash years.

Could the US markets experience that sort of event before the midterm elections?

Personally, I think it's unlikely.

That doesn't mean traders should become complacent.

Far from it.

The technical picture is changing, and it's important to recognise what is unfolding before following the crowd. Corrections are a natural part of every bull market, and understanding the difference between a healthy pullback and the start of a major bear market is where experience becomes invaluable.

I've explained exactly what I'm watching, the key technical levels, and where I believe buyers are likely to step back into the market in my latest video.

Sometimes the biggest mistake traders make isn't buying too early...

It's joining the herd too late.