Have the rules of the game changed in the American stock market?

financialexpress.com:

By Rania Gule

When looking at today’s market movement, we can see that the Dow Jones Index has been showing a significant recovery since the opening and is currently trading at 32,690.5 points. This comes after the index witnessed a negative close last week, especially following a sharp drop on Friday, which raised concerns and anxiety among investors and traders in the American stock markets. Before this sharp decline, the Dow Jones Index was holding onto a key support level at 38.2% Fibonacci retracement, consistently trading above the 32,900-point level, which represented strong support with a higher likelihood of price rebound. However, it closed below this level firmly.

I believe that the tumultuous events of last Friday have changed the rules of the game in the American stock market, especially after the price breached the mentioned support level, sounding alarm bells in the American stock market and triggering a sell signal and a strong downward trend on both fundamental and technical levels. As of now, despite attempts at recovery, the descent continues to dominate Dow Jones Index trading.

With the index dropping to unprecedented levels since March 2023, the question here is: Have the rules of the game in the American stock market truly changed?

To answer that, I say yes. By the end of last week, the risk appetite began to improve at the start of this week due to the absence of a real ground invasion in Gaza.

Stock markets had started to decline since last Wednesday, with Prime Minister Netanyahu delivering a speech in which he stated that they were preparing for a ground invasion. Over the weekend, we received reports of an actual ground attack, but it failed. So, we will see how things develop during the