Looking at the US indices, we have seen some solid retracements, and the bounce so far looks promising. Price action suggests a local low may already be in place, which could trigger more upside in the near term, although some markets may still be trapped in fourth-wave consolidations. Seasonals also look supportive around this period, which historically favors stabilization after sharp pullbacks.
At the same time, it has now been some time since the war tensions escalated in the Middle East, and markets may slowly begin adapting to the situation. If the geopolitical rhetoric cools down and we start seeing more constructive headlines, sentiment could improve quickly. Markets reacted negatively to the initial escalation, so any signs of easing tensions or political moderation could support risk assets and extend the current rebound.
Source: equityclock.com
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