Equity indices expected to reverse

Βραχυπρόθεσμη ευκαιρία βλέπω στα ΕΛΠΕ αν…
January 5, 2016
Long-term outlook for Gold-Oil (subscribers)
January 11, 2016

With European equity indices having another deep red open, I believe we are close to the completion of the downward correction of the rally that started last September-October.

DAX could see 78.6% Fibonacci retracement but the 3 wave downward corrective form is very clear.

dax1

DAX is approaching the trend line that produced the October rally. Critical weekly support there.

dax

 

MIB

Testing the long-term weekly bullish channel.

MIB

 

SPX

The triangle scenario for now remains the dominant one.

SPXD

New highs will only be seen if we manage to break above the red trend line resistance. Breaking below the green trend line support will increase the chances of re-testing the August lows near 1860.

DJIA

DOW4H

NASDAQ

NASDAQ

Short-term trend is bearish with a strong downward momentum across all major indices. Mentality is very bearish. I expect this to change as indices approach their critical support levels. This by no means I’m fully bullish now. I have small long positions and will be looking to increase them only if I see signs that my scenario is coming true.

As always, thank you for taking the time to read my thoughts.

Alexandros Yfantis
Alexandros Yfantis
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.