US500, US100, and KOSPI - bullish breakout or end of cycle squeeze?

Investors and traders should watch these indexes closely as historical records are being approached and broken.
Born2trade | 127 days ago

Investors and traders should watch the US500, US100, and KOSPI closely as their historical records are being approached and broken.

Fundamentals, technicals, and price action aren't clearly aligned, with signs pointing toward a late-stage cycle bubble rather than a healthy breakout.

US500

Approaching 7,400 and looking ultra-overbought. Most of April's gains were driven by the Iran deal, with economic developments taking a back seat as attention stayed laser-focused on geopolitical tensions and hopes for resolution.

We see 7,400–7,450 as very strong resistance, possibly marking the peak of late-stage bull market euphoria. Traders and especially investors need to be cautious here.

US100

Some traders already see US100 reaching 30,000 or higher. Optimism drives long-term trends, but it can go too far.

The 28,000–28,500 zone represents strong resistance that should be respected for now.

If the index caps at these levels, a correction could begin without an extended consolidation period.

Several key events this month could significantly impact global indexes: Trump's projected visit to China, the new FED chief taking office, and potential setbacks on the Iran front.

By Born2trade market research department

Risk Disclaimer: All research and/or forecasts above reflect the author's personal opinion and cannot be treated as trading advice. born2trade is not responsible for any trading results based on any information in this article. Trading Forex and CFDs carries a high level of risk to your capital. You may lose all of your invested funds. Forex and CFD trading may not be suitable for all investors. Please ensure that you fully understand the risks involved and, if necessary, seek independent advice.

Born2trade
Type: STP, ECN
Regulation: FSC (Mauritius)
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