Elections in Italy was the reason for the return of fear back to the markets. We said many times before that a correction was due in the US markets. We expected this trend change because of three main reasons. The strengthening of the Dollar Index, the sharp decline in metals and the bearish patterns formed in the major European Indices. Yesterday our members received the following tweet.
So what now? We expect the 1470-80 zone to pose a formidable support level. Here is where the intermediate trend could change.
Prices are expected to find support and continue the rise towards the all time high. But if prices break below the support levels noted in the posted charts, then we are going into a bigger correction phase.
For the time being have the upper hand and the downward movement is most probably not over yet. 1474 and 1482 are potential bottom levels. should consider buying only if waves start from those levels. The form of the current decline confirms that at least 1482-84 will be achieved. Short covering from 1470-82 would be wise according to our technical and wave analysis.
As always, thank you for taking the time to catch up on my thinking.
A term used to describe a trader (bear) who is expects that a particular asset – be it a commodity, currency or product – to fall in value. The opposite of a ‘bull’.
The idea is that bears attack by getting up on their hind legs and striking their opponents down with their paws, symbolising the fact that they are sellers driving prices down.
Beliefs held by the aforementioned ‘bears’ of the trading world, are described as bearish. Characterised by a generally pessimistic outlook on the state of a given asset, a bearish outlook would suggest that a fall in value is imminent. Opposite of bullish.
A term used to describe a trader who is expects that a particular asset – be it a commodity, currency or product – to rise in value. The opposite of a ‘bear’.
The idea is that bulls attack by bending their heads and poking their opponents upwards with their horns, symbolising the fact that they are buyers, driving prices up.
Beliefs held by the aforementioned ‘bulls’ of the trading world, are described as bullish. Characterised by a generally optimistic outlook on the state of a given asset, a bullish outlook would suggest that a rise in value is imminent. Opposite of bearish.