Initial bullish signs but the danger of further declines has not yet escaped

Just yesterday in this column we wrote: tomorrow the markets will decide whether to return to rise or continue to fall. Several times then in the last few days we have put the emphasis on our oscillators which presented bullish divergences.

Today the markets rebounded after having in some cases left a gap down at the opening which they then filled later. What to wait from now on? There are initial bullish signs but the danger of further declines has not yet escaped.

Are these the signs and conditions for leaving recent lows behind? It could be, but now let’s proceed step by step to first keep the pulse of the situation and then define an optimal investment strategy.

At 8:04 pm on the trading day on 12 October we read the following prices:

Dax Future

15.149

Eurostoxx Future

4.046,5

Ftse Mib Future

25.700

S&P 500 Index

4.357,40.

Our annual forecast is bearish from August onwards

In red our annual forecast on the global weekly stock index for 2021.

In blue the chart of the American markets up to 8 October.

As written on the weekend, this week we will proceed day by day and from time to time we will define the possible next scenario.

Initial bullish signs but the danger of further declines has not yet escaped. The price map to monitor

Dax Future

Bullish trend until we see a daily close below 14.992. Only long-lasting rises with a close on 15 October above 15,253.

Eurostoxx Future

Bullish trend until we see a daily close below 4.004. Only lasting increases with a close on 15 October above 4,089.

Ftse Mib Future

Bullish trend until we see a daily close below 25.295. Only lasting increases with a close on 15 October above 25,930.

S&P 500 Index

Bullish trend until there is a daily close below 4.350. Only lasting rises with a close on 15 October above 4.430.

Which multday trading operations to keep for Wednesday and the following days?

Stay Flat in multidays optics waiting for developments.

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