Swiss Market Index nice hammer off 200 MAIt is not everyday that we look at the Swiss Market Index, which is Switzerland's blue-chip stock market index of 20 of the largest and most liquid stocks.
BUT when something bounces off a trend line inside a long-term bullish trend, and that trend line happens to converge with a prior support and the 200-day average...and not to mention the formation of a hammer candle on a day when other global stock indices fell, which shows outperformance... well, on those occasions, even the SMI 20 should be treated with respect.
So, have we seen a low already following the recent selling? I wouldn't bet against it, that's for sure.
By Fawad Razaqzada, market analyst with FOREX.com
