TechFlow news, April 8 — According to analysis by The Kobeissi Letter, last night U.S. stocks experienced sharp short-term volatility due to false news about a "tariff delay." The fluctuation can be attributed to technical indicators and market sentiment still operating under the "buy the dip" mentality prevalent several years ago.
The analysis stated that for the past two years, investors have become accustomed to buying stocks on dips, both institutional and retail investors alike. Even in March, as markets declined, capital continued flowing into equities. Now, if a trade deal is announced, no one wants to "miss the bottom."
However, if April 9 approaches without a trade agreement between China and the U.S., market sentiment could collapse again. Market sentiment is polarized, with fear levels reaching those seen in March 2020, indicating more volatility ahead.
