1) Most indices retraced 50%, and we are at a very important turning point: if indices breakout cleanly there resistance (for instance SP500 at 2610.8, among other ones) then I would reassess my short bias as we would go back to potentially bullish territory (however, this would mean that the world and its economy become rosier --- no more issues!). The DAX could...
Lots of reasons. But the markets could also be short-sold right away. However 4907 is extremely "attractive" so far.
The CAC40 looks like a nice setup with the bias still supportive to the upside. However, the price will need to get above yesterday's session high which is just above the Monthly Pivot high. Go long if the price breaks above 4852 and place a stop loss at 4673. The profit target is at 5108 for a good risk reward trade.
it was difficult to foresee a possible forex reaction on world cup result, unless the winner were the sole user of its currency (case of brazilian real), but regarding the stock market, the french CAC40 having no positive reaction at all to this means only one thing: big players exactly know where it is going to go and have already loaded their bazookas. in one...
Volume is also decreasing, the rally was probably mostly due to shorts covering and a big technical bounce (retracement + monthly diagonal support). We shall see.
We shall see. We reached overextended levels in Europe and 50% retracement in the US.
Testing
We shall see.
Let's see if that bear market in some US markets are that strong.
Multi-confirmation is required.
European markets are in another cycle compared to the US. A true pullback is getting more and more possible in a few European markets in spite of what's currentky going on in my opinion. It is possible that January becomes bullish before the bigger picture (potential bearish 2019 trend) takes over. Of course, I could be wrong and the markets could well collapse...
By then, there could be some sharp countertrend rallies. More analyses and price discoveries will have to be made as the tape unrolls.
The French CAC40 index appears to be leading USDJPY by 9 weeks. There is no reason why it should (other than the big macro picture, USDJPY falls on in risk-off sentiment and so do equities). Let's see!
We shall see. The market conditions may change a bit after the FOMC from this coming Wednesday.
We shall see what the markets will declare
A quick scalp idea: Price is currently moving in an rising wedge, and we will be looking to place short trades when the RSI indicator becomes relatively overbought. The price had already broken out of a ascending trendline from the monthly timeframe, therefore, short positions are highly feasible on this index.