The Case for a Countertrend Rally

Yesterday, we briefly addressed the precarious lack of volatility within crypto markets.

It's piqued our curiosity to see crypto volatility dampen while risk markets have continued to sell off in recent weeks. This comes as equities lost their June lows, where downside volatility looked poised to follow through.

But, this week, risk appetite has shown a completely different face.

The S&P 500 is back above the lows, putting in a failed breakdown.

What's more is that both Ethereum and Bitcoin have risen in conjunction with equities, supporting the case that the conditions for a countertrend rally have been set.