Do you feel like you can't grasp the direction lately? Market sentiment is very poor?

For two consecutive days, there have been obvious rallies before the US market opens, and the momentum is quite strong.
Especially last night’s wave, which makes it easier to misjudge the direction, because at the same time, US stocks surged significantly, and many people subconsciously think, “This time might really be a strong move.”

But as everyone has seen:
Each time, the price quickly reverses within 1–3 hours after the US market opens, with a rapid drop that breaks below the previous low and creates a new low.

This kind of movement is not a trend but a typical strong control and shakeout pattern.

How does the shakeout happen?
You will find that it almost first rebounds upward at a ratio close to 1:1 of the previous decline, giving you enough “hope” and confirmation;
Then, it uses an extension ratio of about 1.168 to fully and quickly give back the rebound gains, even directly hitting a new low.

The purpose of this rhythm is only one:
Maximize confusion, maximize stop-loss efficiency.

In this kind of market, if you still follow the usual “close stops nearby” approach to go long or short, the result is basically the same—regardless of whether the direction is correct or not, you will be hit with stop-losses back and forth.

Only two types of people can survive in this kind of market:
One chooses not to participate; the other recognizes the structure, goes short on rallies, and has the ability to hold their positions.

When the market begins to frequently “fluctuate unpredictably,” and the sense of direction is deliberately disrupted, it’s often not the end of the trend, but a preparation for more intense volatility. When most traders gradually lose their judgment amid confusion and repeated stop-losses, the real “needle” and greater damage are often just beginning to brew.