Doms view today
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Are we there yet?
DAX 30
FTSE 100
S&P 500
Has the sell-off in equities gone far enough? The sharpness of the selling has brought the FTSE, DAX and S&P back to around key daily averages, as well as having got rid of overbought momentum readings. In this sense, the correction has already done its job, but I am leery about trying to get back in too early. I do believe that the sell-off will give way to further gains to new all-time highs in each case. It is merely a question of precise timing and I would like to see a powerful bounce before recommitting to long positions.
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DAX 30
The DAX has stabilised above yesterday’s intraday lows at 9282. However, the failure to rally convincingly despite the oversoldness is a worry. Failing a fast return to the uptrend, I fear we could get more downside to 9180. After this shakeout, I seek 9817 and beyond.
DAY: I would consider shorting a reversal back through the 13-fourhourly.
POSITION: Neutral for now. I will buy again once the 21- and 55-EMAs recross.
SUPPORT RESISTANCE
9301.5
9657.1
9246.3 9545.6
9202.2
9448.7
9069.8
9412.4
FTSE 100
The FTSE is deeply oversold on its fourhourly chart, which raises the likelihood of a near-term bounce. Whether that move powers through the intraday EMAs or ends in failure will determine my next move. I am still fearful of a dip through 6500, ahead of the next rally to 6951.
DAY: I might consider near-term shorts if the price fails at the 13-fourhourly EMA.
POSITION: Neutral for now.
SUPPORT R ESISTANCE
6421.5
6766.0
6317.2
6717.5
6271.2
6693.5
6214.3
6641.2
S&P 500
At yesterday’s intraday lows, the S&P had made it most of the way down to my next bearish target 1767.6. At the very least, I’d want to see the price power back through its 55-fourhourly EMA before trying to buy again. My bigger-picture view remains that we go to 1900 and beyond.
DAY: I might short a reversal around the 13-fourhourly EMA.
POSITION: Neutral.
SUPPORT RESISTANCE
1790.1 1837.6
1777.4
1827.1
1767.5
1807.2
1755.7
1797.2