Friday, 11 May 2012

CAC and Eurostoxx to accelerate downwards....

CAC has made an impulsive wave down from 3600. Wave 2 is either completed and a move to break the mid pitchfork support has already started or we are about to see another upward wave ( Wave C ) towards 3300. The bigger picture count of CAC is bearish. At least the bearish count is the more viable for my criteria. For the time being, as long as this index is above 3100, new lows will be avoided. The crossing of the two EMAs is a bearish sign for the longer term.
Continuing from where we left at CAC, the same stands for Eurostoxx regarding the crossing of the two EMAs. Again the most strong count here is the bearish one. In both cases the market has been rejected at the upper pitchfork and ready to test the middle pitchfork support. Many may try to count this downward waves as a second wave 2. For me this is less possible to stand because if this down move from March-April highs is a wave 2 of smaller degree, then it shouldn't be larger in time and in size relatively to the 1st and 2nd wave of a larger degree.

Concluding, things don't look good for those two indices. Entering long positions should be followed by relative stop orders as this can evolve to something very ugly, as it did for Greece.

No comments:

Post a Comment