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Markets on the brink of main events

Somehow I was almost sure that Nasdaq’s last week’s rally attempt will not be sustainable. And this  short trade was quite rewarding.  Other indices behaves similarly and it should not be a surprise – stock markets are very vulnerable now.

Trade wars, geopolitics and ever growing smell of looming market reversal, concerns that bull market end is probably near and “this time won’t be any different”… now, let’s see what technicals will tell us ?

I believe it is not a last attempt to rally but each next one is going to be less and less stronger. Then, some time in May – September  (I may be mistaken, but this looks like the most probable time frame) I expect major impulse down. First target for SP futures is area of 2270.

Please, note I normally use the MT4 platform for analyses and pictures – prices on cash index, CFD and near month futures are always different. These are “proxi” instruments. Price levels I show here are very approximate – but it is in line with my concept of “robust” trading systems – meaning that brokers and prices and even instruments difference shall not affect so much on results of your trading. 


SP500 guesstimates

Let’s look at Nasdaq (this is again CFD instrument based on near month futures). I see the target area of USD 5260 – this is potential bounce level.


Nasdaq guesstimates

And more picture for Europe, Dax index. There two visible support areas EUR 11,315 and  EUR 10,620 – last one being more sustainable.


Dax guesstimates

The above picture and levels must and will change depending on price near-term behavior. I am going to re-publish this  in a couple of weeks (price charts are weekly), if things change – but nevertheless I am watching these markets very closely.

Use discretion planning your trade. I will mostly advise to use options spreads for your future market short trades – however, the final choice is very much dependent on your knowledge and risk appetite.