Expect an upward reaction to avoid the start of a correction for the equity markets

Is the rise in the stock markets in August already over or will the last 2 days be preparatory to new rises? This is a truly watershed week to see if there is annual forecast which from this moment on becomes descending may or may not be confirmed. The trend remains bullish but an upward reaction is expected from now on to avoid the start of a correction for the equity markets.

Let’s proceed step by step.

At 4:26 pm on the trading day on August 17th we read the following prices:

Dax Future

15.907

Eurostoxx Future

4.191,5

Ftse Mib Future

26.240

S&P 500 Index

4.454,48.

Starting this week, the polarity of our annual forecast has shifted from bullish to bearish

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 13 August.

The closing of this week will represent a first moment of important verification in this regard.

Forecast for the week of August 16th

The weekly minimum is expected between Monday and Tuesday and then leaves room for a rise until Friday. For the moment the forecast remains confirmed but from tomorrow onwards an upward reaction is expected to avoid the start of a correction for the equity markets.

The levels to monitor to keep the pulse of the situation

Here’s what to monitor for tomorrow to understand if prices will continue to rise or not and if a downward phase will begin instead.

Dax Future

Bullish trend in progress. Short bearish reversal with daily close on August 18th below 15,800.

Eurostoxx Future

Bearish trend in progress. Short bullish reversal with daily close on August 18th above 4.209.

Ftse Mib Future

Bearish trend in progress. Short bullish reversal with daily close on August 18th above 26.425.

S&P 500 Index

Bullish trend in progress. Short bearish reversal with daily close on August 18th below 4.435.

Which trading to keep for Wednesday?

Maintain long multidays on Dax and S&P 500. Flat on other indices. Tomorrow is a day that will probably clarify the dynamics until the end of the month.

As usual, we will proceed step by step.

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