The US100 index on the 4-hour timeframe has entered a corrective and distribution phase following its recent mid-term bullish move. The market’s failure to hold above the identified supply zone, along with the formation of lower highs, clearly indicates weakening buying pressure at higher price levels. This behavior typically appears when large market participants reduce long exposure rather than initiate new positions.
The break of the ascending trendline in the Nasdaq Chart and the emergence of strong bearish candles confirm a shift away from a bullish structure. The short-term pullbacks seen during the decline are corrective in nature and should not be interpreted as trend reversals. Such moves often serve to attract retail buyers and provide liquidity for the continuation of the downside move.
The lower demand zone highlighted on the chart represents the key decision area for the market. This zone aligns with previous lows and holds structural significance, making it a potential area for the correction to conclude. Price is likely to sweep liquidity below these lows before any meaningful bullish continuation occurs. A valid bullish scenario should only be considered after a clear reaction and structural confirmation within this zone.
Overall, as long as price remains below the supply zone, the market bias stays corrective. Early long entries carry elevated risk under these conditions. A disciplined approach—waiting for price to reach key levels and confirming market structure—remains essential. In this phase, risk management and patience outweigh directional bias.
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