The most relevant, visible and disturbing trend of the last 10 weeks, namely the very steep declines in the values of stock markets around the globe, has been arrested. After two and a half months of very steep losses and turbulent volatility around the globe traders in the US, Asia and Eurozone have begun to open their wallets again and buy stocks. This has had the collective effect of bringing the falls to a halt. The result of this effect is visible on the attached chart where we can see the precise point below which the S&P 500 could no longer fall. This is so because at this very price traders believed there would be few further sellers and began buying. That price was 2539.40.
This turn of events does not mean that the bull market that was in train prior to the early February losses has returned. Hardly. Rather the turn of events indicates that the market has got a grip on itself. And therefore for us at traders we should be focused exclusively at this point in time on the short term trades this development presents. Specifically, while our signals have for the last 78 hours indicated that the indices were and are strong call/buy opportunities, this is so for no longer than hourly and end of day trading. This is so because the market has had the wind knocked out of it. It is not simply going to dust itself off and start galloping away. Therefore pay attention to market indices
Andamento del mercato - 18/04/2018