Dow Jones Index is set to bounce
Besides this there are a few things that allow us to remain optimistic about the stock markets, at least for a while. The “Fear Index” VIX has been fluctuating around 20, for over a month now. The new wave of declining markets, instigated on November 09, has not affected the fear of market participants.
The stability of gold prices illustrates the same. Since early October, the gold’s price fluctuations mirror the dynamics of the dollar. Yesterday’s market decline occurred amid the weakening of gold .
The Chinese yuan retains its strength, showing increase since the beginning of the day, which in turn allows us to talk about a partial drawdown of the market, in which some assets have been declining but others have retained their strength.