As written in the past few weeks, the October minimum it is related to the Christmas rally and then to a bullish extension until the first ten days of May. The point in time to wait for a correction is between the first ten days of January and that of March. In fact, precisely in this period of time, in the historical series from 1898 to today, significant bearish spirals have been formed several times.
What to wait for tomorrow from the American Central Bank? The Fed will not scare the markets on the contrary. We do not believe that there can be shocks to the downside, on the contrary, this could be the driver to start the current bullish phase with further strength.
Let’s proceed step by step.
At 5:55 pm on December 14th we read the following prices:
Dax Future
15.466
Eurostoxx Future
4.145
Ftse Mib Future
26.555
S&P 500 Index
Our annual forecast
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 10 December.
What is our forecast for this week?
Bullish side phase between Monday and Tuesday and then rise until Friday, where the weekly high is expected. A self-adjustment is likely in progress and the retracement / side phase will be expected between Wednesday and Thursday.
Prices expected for the week
Dax Future
minimum area 15,430 / 15,601
area of maximum 16,056 / 16,345
Eurostoxx Future
minimum area 4.170 / 4.238
area of maximum 4,290 / 4,378
Ftse Mib Future
area of minimum 26,600 / 26,805
area of maximum 27,555 / 27,900
S&P 500 Index
minimum area 4,620 / 4,678
area of maximum 4,721 / 4,804.
The Fed will not scare the markets on the contrary it could make them accelerate to the upside
Below is the price map to keep the pulse of the situation.
Dax Future
Bullish trend until we see a daily close below 15,369. Long lasting drops only with a weekly close of less than 15,144.
Eurostoxx Future
Bullish trend until there is a daily close below 4.177. Long lasting drops only with a weekly close below 4,076.
Ftse Mib Future
Bullish trend until we see a daily close below 26.625. Lasting reductions only with a weekly close of less than 26,030.
S&P 500 Index
Very short bearish trend until there is a daily close above 4,710.30. Long-lasting downsides only with a weekly close below 4,540.
Position to hold for multidays trading:
Long in progress since the opening on 13 December.
How could Wednesday’s trading day be played out?
Side phase for most of the day and then bullish acceleration until the close.
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