Tonight, two major events will occur: the announcement of interest rates until dawn and Powell's speech. Where do we go from here? As someone who understands human nature, I believe this is ultimately a business. The big players have always liked to kill both bulls and bears to acquire cheaper chips. I have observed that most of the bears have gathered at the critical point of 34, and a significant portion of last night's bulls has also turned into bears. Allow me to ramble a bit: if I were the big player, I would first create an illusion of helplessness during the daytime Northern Expedition to lure bears, and then once again proceed with the Northern Expedition toward key area 36! When all the bears despair and exit, I would turn south with the momentum from Powell's passionate hawkish speech! Kill, kill, kill!
Currently, the speculation revolves around the expectation of interest rate cuts. The real trapped positions are between 3800 and 4700 points. At the current level, there aren't many people trapped; mainly, it's those above who are trapped and won't easily release positions from 3800 to 4700. Looking at the weekly chart, this market trend is similar to the one from January to April 2022. They deliberately do not allow those in the densely packed high position area to escape, pulling it up briefly and then quickly dropping. Therefore, the current market may still see the same situation. We are currently in a median phase, so one can first speculate on a long position and then layout a trend short position (I still firmly believe in the bearish trend). The reason is that the bears at high positions have basically made a lot of profit, and a slight upward pull is also normal. They can squeeze the bears and then move down, which aligns perfectly with the logic of the market's main funds since they can temporarily influence market prices. Overall, currently, the factors are: first, the impact of news; second, the demand for rebounds after overselling; third, squeezing the high-position bears; and fourth, allowing the profits of trend shorts at high positions to be given back.