Group 1 - Opendoor Technologies Inc. shares experienced a rise attributed to positive comments from a hedge fund manager on social media [1] - The stock is currently considered extremely overbought, nearing a previous peak price of $4.85, which was established in December 2023 [1][5] - The Relative Strength Index (RSI) indicates overbought conditions in both short-term and long-term perspectives, suggesting a potential market correction [2][4] Group 2 - The overbought status may attract sellers anticipating a price reversion, which could exert downward pressure on the stock [5] - Historical resistance levels, such as the $4.85 mark, may lead to psychological barriers for investors holding losing positions, further complicating the stock's upward momentum [5][6] - There is uncertainty regarding when the current rally will conclude, but a significant likelihood exists that it may occur around the $4.85 resistance level [6]

Group 1: Market Sentiment and Performance - Optimistic sentiment drives technical indicators into overbought territory, supported by a trade agreement between the US and Vietnam, the passage of the tax reform bill in the House, and stronger-than-expected employment data [1] - US stock funds saw the highest net inflow since November last year, with a net inflow of $31.6 billion last week, following six consecutive weeks of outflows [5] - The S&P 500 index may trigger a "sell signal" if it breaks through 6,300 points in July, indicating potential bubble risks as the market is currently overbought [6] Group 2: Employment Data and Economic Indicators - The US added 147,000 non-farm jobs last month, significantly exceeding the market expectation of 106,000, while the unemployment rate fell from 4.2% to 4.1% [3] - Job openings in May reached 7.769 million, surpassing the expected 7.3 million, indicating a healthy labor market despite a slowdown in hiring [3] - The Atlanta Fed's GDPNow forecast for Q2 GDP growth was revised down from 2.9% to 2.6%, although still above the long-term trend growth rate of 1.8% [4] Group 3: Federal Reserve and Interest Rate Outlook - The likelihood of a rate cut in July has diminished, with traders assigning a 68% probability of a 25 basis point cut in September, down from 74% a week prior [4] - The latest employment data complicates the case for a quick dovish shift by the Federal Reserve, as rising effective tariff rates and stable job markets may delay rate cuts until Q4 or even December [5] - The market's resilience amid stable employment data has offset the negative impact of reduced rate cut expectations [5]

Core Viewpoint - The article discusses the KDJ indicator as a tool for identifying turning points in the stock market, likening it to a "speed sensor" for stock prices, helping investors understand whether the market is accelerating towards a peak or preparing for a rebound [1]. Group 1: KDJ Indicator Overview - KDJ consists of three lines: K (short-term speed), D (medium-term speed), and J (extreme speed), which together monitor stock price momentum [3]. - The combination of these three lines is essential for identifying market turning points [3]. Group 2: Practical Application of KDJ - **Golden Cross and Death Cross**: A golden cross occurs when the K line crosses above the D line, signaling a potential upward movement, while a death cross occurs when the K line crosses below the D line, indicating a possible downward correction. For example, a tech stock saw its price rise from 15 to 30 after a golden cross, then drop back to 20 following a death cross [4]. - **Overbought and Oversold Conditions**: The J line indicates extreme conditions; a J value above 100 signals overbought conditions, while below 0 indicates oversold conditions. For instance, a liquor stock had a J value of 120 before a 15% correction, and a J value of -10 before an 8% rebound [5]. - **Divergence**: A top divergence occurs when the stock price reaches a new high but the KDJ does not, suggesting potential selling pressure. Conversely, a bottom divergence indicates a possible reversal when the stock price hits a new low but the KDJ does not [8]. Group 3: Trading Strategies and Tips - KDJ is best used for short-term fluctuations, particularly in a sideways market, where its signals are more reliable [8]. - In a strong trend, KDJ may remain in overbought or oversold territory, and traders should consider volume and market conditions before making decisions [8]. - A mnemonic for using KDJ effectively is: "Golden cross looks at volume, death cross looks at support, avoid hard resistance in overbought/oversold conditions, and turn quickly when divergence appears" [8].