The U.S. stock market has broken, is it bargain hunting or liquidation?

Affected by Omicron and Powell's sudden turn to accelerate Taper, the three major U.S. stock indexes fell continuously, the S&P 500 fell below the 60-day moving average, and the Dow fell below the 200-day moving average. It is a good time to "buy the bottom", or is the US stock market sinking?

The recent U.S. stocks is no more fundamentals, and market are all based on various news. At present, 20 countries around the world have confirmed cases of Omicron. The market’s concern about Omicron is whether there are a new round of large-scale city closures, causing further disruption to the supply chain. In that case, the Fed's monetary policy would not dare to tighten too much, which would be good for the financial market. If the impact is controllable, then the Fed's tightening plan will be carried out as scheduled or even accelerated.

Uncertainty about the pandemic, possible changes in the monetary policy, and the re-emergence of the debt ceiling may make the market need to re-price these uncertainties, and U.S. stocks will enter a "period of uncertainty".

Relatively high profit taking, and high personal holding leverage could also amplify volatility. But if there is a sharp correction, I think it can still provide a better opportunity to enter the market, because there is no sign of a full turn to a bear market cycle.