After another day of trading, our Research Department expresses its opinion: the retracement continues and now a strong correction could also occur on the equity markets.
Just last evening, we have begun to highlight that in the last few days, some swings have formed that in the study of the historical series have seen decreases of 7/10% at the beginning.
Today, the bearish movement of the stock markets has continued and therefore we do not change our mind, on the contrary the bearish thesis tends to strengthen. How to do it from now on? Tomorrow is the closing of the week and therefore it is interesting to understand how the prices will be positioned for the next days / weeks.
At 7:21 pm on February 18th we read the following prices:
Dax Future
Eurostoxx Future
3.678
Ftse Mib Future
22.960
S&P 500 Index
3.898.
The short-term oscillators are now all turned to the downside, while the weekly and monthly ones are starting to lose momentum. And this signal, if further confirmed, would be truly worrying.
The annual forecast instead projects increases at least until mid-March
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 12 February
The first setup of the current year will expire on March 8th. This date should be reached with an absolute / relative minimum / maximum.
The retracement continues and now in the equity markets there could also be a strong correction “against” the forecast that sees increases
Dax Future
Bearish trend. New rises only with the daily close of February 19th above 14,064.
Eurostoxx Future
Bearish trend. New hikes only with the daily close on February 19th above 3.722.
Ftse Mib Future
Bearish trend. New rises only with the daily close of February 19th above 23,260.
S&P 500 Index
Bearish trend. New rises only with the daily close on February 19th above 3,950.
On almost all the markets analyzed, double / triple maximums on the daily time frame begin to be read. If the retracement continues tomorrow, the idea that we are at the beginning of a 7/10% decline would begin to take on even more strength.
We therefore await developments and will update over the weekend. For the moment, the recommended short-term trading is still only intraday.
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