With overvalued markets and the Fed stepping out of the way, the presentation of results below expectations lead investors to take profits and the markets today slided significantly.
For the particular case of DAX30, the barrier of 9456.5, identified in previous analyzes, was broken today.
Tomorrow we will have the famous NFP (Non Farm Payrolls), which could push the index to the next support @ 9212.0 (“Bearish” projection shown in the figure below).
The Earning Season continues to support the rising markets.
Twitter has presented exceptional results, beating analyst estimates and today the market will be impacted with a day filled with relevant news:
U.S. stocks are ranging after the adoption of sanctions against Russia from the European Union.
The last “Momentum”, which have been fueled by profits that topped analysts’ estimates, is slowing down.
Today, the trading volume was relatively high in the SP500.
The geopolitical risk remains high but corporate profits have supported the valuations in the main Indexes.
The leading World Index SP500 fell today confirming the strong bearish pattern from last week.
FTSE100 and Dax30 also declined mainly after the opening of the american session.
Gladly my short target in Dax was reached today (9536.5). 🙂
During the following days we might be presented with the so expected retraction in the equities Market.
The fall of the Amazon was crucial to the behavior of the markets during the day and the good news of the “Durable goods orders ” weren’t able to hold the stock prices in the Major Indexes.
It’s recommended to trade cautiously with the current volatility, so today I closed my trading by 09:28 h.
It was very quick and pretty clean. 🙂
Note: Click the picture to enlarge
The trade was made on a MT4 platform from ActivTrades and the instrument used was Ger30 (Dax):
It’s incredible how this Index rise and the market don’t care about bad financial or geopolitical news.
The earning season and the FED are boosting the stock market and it doesn’t even pause to rest.
It has been said by several experts, that SP500 has still more space to rise, at least until 2150/2200.
The famous and expected retracement is still to came.
I’ve to be honest, I miss a good short. 🙂