The spot premium index shows preliminary signs of stabilization and bottoming. Compared to the level before the US stock market opened on Monday, the current price has slightly decreased, while the premium has increased.

This situation indicates that among the many forces leading to the price drop, the proportion occupied by futures is starting to increase; while among the forces driving the price rebound, the proportion of spot buying has also risen.

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

Generally, under such conditions, the market may experience two types of trends:

Either a rebound occurs to confirm that the previous drop was a false breakdown;

Or there will be a final wave of accelerated decline, after which the correction phase will be confirmed to be over.

Under what circumstances will there be a false breakdown? 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 reading academic search problem-solving Q&A music generation more