As expected, we bounced up and re-tested the Fib 50% zone of the second leg of the last week's drop. I expect the first days of this week to offer more movement south, and with a close below 1400, we might go down and re-test the previous bottom at 1260. The price will tell us whether or nor this is the bottom or if we will follow the 2008 scenario and go lower for the coming weeks.
On the upside, it looks unlikely that we would break the 1500 resistance but assume the US could surprise us with some great news that would fuel the global markets. However, my view is still that we should build another leg on the downside with a first target close to the 1260 zone.
On the upside, it looks unlikely that we would break the 1500 resistance but assume the US could surprise us with some great news that would fuel the global markets. However, my view is still that we should build another leg on the downside with a first target close to the 1260 zone.
Trade active:
Short triggered at US close yesterday. The OMX daily tail gave hints that this might happen. Ideally, would like to see the 1400 level break to trigger a potential movement to 1260.
