Although the U.S. dollar's decline fueled a sharp rebound in U.S. equities, two key "sentiment indicators"—Tesla and the crypto market—quickly retreated after a brief surge. This phenomenon may suggest that market exuberance is gradually cooling post-Quadruple Witching Day, especially as the Christmas season approaches. Trump's first legal defeat has further dampened some optimistic expectations, pressuring the tech sector while potentially benefiting traditional sectors. A short-term trading strategy could involve a bearish view on the Nasdaq index while monitoring the Dow Jones for reversal opportunities after its longest losing streak.

Market Sentiment Cooling Down After Quadruple Witching Day

Dec 23 2024