DAX, Dow and SP500 not yet in technical bear markets. However SP500 seems to have created a head & shoulder formation with broken neckline indicating a first target at 1.150 now trading 1.252. The H&D formation could be discussed so this is not written in stone. If it is a H&S Dow's first target could be 11.000 now trading 11.900.
The bear markets target could be: FTSE 4.885 now at 5.660, SWED 880 now at 1.005, MIB and IBEX targets seems to be 2009 lows at12.317 and 6.649.
The numbers here are not exact and could be changed. The markets have fallen without any correction for several days and are very oversold. A correction on upside could go very high because short positions will be covered. At the same time it will be an excellent opportunity to short our bear markets. Dax, Dow and SP500 which have not been locked in as bear markets could see an upside correction go very high and I advice caution with these indices for now.
Fundamentally the sharp drop in bank indices indicated well in advance the coming bear markets in 2007. The accelerated downtrend that now takes place in Europe is also a warning for eventual coming bank runs. Also remember that the governments have less money now to keep the banks afloat. If the banks will stay afloat you only have to put your money back into your account.
The bear markets target could be: FTSE 4.885 now at 5.660, SWED 880 now at 1.005, MIB and IBEX targets seems to be 2009 lows at12.317 and 6.649.
The numbers here are not exact and could be changed. The markets have fallen without any correction for several days and are very oversold. A correction on upside could go very high because short positions will be covered. At the same time it will be an excellent opportunity to short our bear markets. Dax, Dow and SP500 which have not been locked in as bear markets could see an upside correction go very high and I advice caution with these indices for now.
Fundamentally the sharp drop in bank indices indicated well in advance the coming bear markets in 2007. The accelerated downtrend that now takes place in Europe is also a warning for eventual coming bank runs. Also remember that the governments have less money now to keep the banks afloat. If the banks will stay afloat you only have to put your money back into your account.
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