2 Jul 2020 ● 07:02 AM
The Chinese stock market has been up big for 2 consecutive days. This after what has been prolonged wave 2 crisis period. During this wave 2 down the Shanghai index did not make a new low but was faced with the worst economic and social mood news. From riots in HSI, US trade wars to the Pandemic epicenter. The case is ideal when sentiment is as bad or worse in wave 2 compared to the bottom before wave 1 started. This divergence in mood is what fits the wave 2 higher bottoms based on the Psychology of wave patterns. It is the reason why counter intuitive thinking is so difficult. If news is so bad at the wave 2 lows is why no one wants to buy that bottom and does not believe in it. Wave 3 eventually leads to recognition that the worst is behind. This is the stock market setup so far.