This assumption for the markets cannot be shelved yet but here are the levels and when it will become very likely

After the first trading day of the week, what can we add to our analysis of the last few days? Over the weekend we wrote “There are all conditions that between Monday and Tuesday the stock markets can return to the upside”But after today’s session the decline has not yet been denied. In fact, this hypothesis for the markets cannot be shelved yet but here are the levels and when it will become very probable.

Let’s proceed step by step.

At 18:05 on 23 August we read the following prices:

Dax Future

15.852

Eurostoxx Future

4.177

Ftse Mib Future

26.050

S&P 500 Index

4.486,68.

The annual forecast has turned bearish since last week

In red, our annual forecast on the world stock index on a weekly scale for 2021.

In blue the chart of the American markets up to 20 August.

We have entered a time zone where the annual maximum should already have been marked for all international markets.

Forecast for the week of August 23

The expected swing is as follows:

weekly minimum between Monday and Tuesday and then leave room for a rise until Friday, the maximum day. Tomorrow it will therefore clarify whether the scenario will be confirmed or not.

This assumption for the markets cannot be shelved yet but here are the levels and when it will become very likely

Attention, the decline that has been going on for several days has not yet been denied.

Dax Future

Bearish trend in progress. Short bullish reversal with daily close on August 24 above 15.935.

Eurostoxx Future

Bearish trend in progress. Short bullish reversal with daily close on August 24 above 4.181.

Ftse Mib Future

Bearish trend in progress. Short bullish reversal with daily close on August 24 above 26.165.

S&P 500 Index

Bullish trend in progress. Short bearish reversal with daily close on August 24 below 4,406.80.

What trading operations to keep for Tuesday?

Keep Longs on the S&P 500 and stay Flat on the other indices analyzed. The closing of tomorrow’s trading will be decisive as it could deny new declines or put the same hypothesis back into play.

As usual, we will proceed step by step.

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