The spot premium index shows preliminary signs of stabilizing and bottoming out. Compared to the levels prior to the opening of the U.S. stock market on Monday, the current price has slightly decreased, while the premium has increased.

This situation suggests that among the many forces leading to price declines, the proportion attributed to futures has started to increase; and among the forces driving the price rebound, the proportion of spot buying has also risen.

Therefore, for the bulls, this is undoubtedly good news.

Under such conditions, the market may exhibit two types of trends:

Either there will be a rebound, confirming that the previous drop was a false breakdown;

Or there will be one last wave of accelerated decline, after which the correction phase will be confirmed as complete.

Under what circumstances does a false breakdown occur? How long does the correction phase usually last after an accelerated decline? How to determine whether the market is in a rebound or an accelerated decline? Help me write, image generation AI, search AI, read academic search, problem-solving, answer questions, music generation, and more.