Nasdaq (5/2/22): After the announcements of the expected 500 basis-points rate hike from the FED last week, there was a mass sell-off in the markets. However, we're now getting Bullish Divergence on the RSI. This means that we are losing strength from the sselling pressure. We are likely to bottom out soon, maybe today or in the next couple of days.
Crypto: For those crypto investors/traders, this also means that we are likely going to get a Bullish rally this week/next week. Bitcoin/Crypto has been following the Nasdaq quite closely since late last year. We can see there is a direct correlation between the two and I've been using the Nasdaq as an indicator for Bitcoin.
Sidenote: We are in a BEAR market so far in 2022, so I do not believe that this rally will send us into new All-Time Highs in the stock market. I do believe we are going down much lower this year eventually. Every rally will likely end in a Bull trap and sell-off. The possibility of a continued sell-off here, even though the RSI is oversold, is always imminent as well. I would also not be totally shocked to see the market just continue down from here. However, these are my thoughts based on the current look. Will be watching and updating.