DAX broke easily the 61,8% retracement.Next support at 5300 (76,4%).
MIB 14000 support and 76,4% retracement is the last stand if bulls want to have more chances on their side. If it is broken then the chances diminish. On friday the Italian goverment has auctions. If 7% yield is broken that will be very bad news......for the whole euro area.
SP500 is heading towards our target from last week 1150(61,8%). Todays sharp pre market futures fall due to chinese PMI (factory activity lowest since March 2009) may escalate to something bigger when the market opens. Short stops would be placed around 1200 capitalising from the sell signal at 1250 area.
Morning weakness was followed by a countertrend upward movement. All indices reacted sharply after opening exactly at their supports. Weak euro resulted in revisiting the lows and we have to wait until US market opens to see if we go even lower. Another upward move will give another chance to sell and in my humble opinion we will see even lower lows today.
ReplyDeletes&p is close to our targer given the week before....this doesn't mean it cannot get lower. DAX has a support at 5450 and MIB has 13100 as a last resort....the scenarios are worst for Italian MIB since it broke past 76.4% retracement. Will have to wait an see tomorrow for MIB.
ReplyDelete