With the US closed Monday for Labor Day the Asian and European indexes fell sharply. The European STOXX 600 fell 4,1 percent. DAX fell 5,3 percent to a new low.
US stock futures were open and fell in light volume and so did crude oil.
Since all European indexes opened with a gap on downside the coming days might be very choppy. These gaps in indexes always get covered sooner or later and the American traders use to send the market up to close these gaps only for a few minutes when the trend will continue down. A short sell order at last Fridays low is what many professionals will put in place in a situation like this.
The two hour bar chart with 8 and 21 MA:s is the best way to follow the short trend when the market goes like this. IBEX, MIB and CAC are very close to take a new low as well so this will be an interesting week.
The fundamental reasons are the European debt crisis and Americas job market.
US stock futures were open and fell in light volume and so did crude oil.
Since all European indexes opened with a gap on downside the coming days might be very choppy. These gaps in indexes always get covered sooner or later and the American traders use to send the market up to close these gaps only for a few minutes when the trend will continue down. A short sell order at last Fridays low is what many professionals will put in place in a situation like this.
The two hour bar chart with 8 and 21 MA:s is the best way to follow the short trend when the market goes like this. IBEX, MIB and CAC are very close to take a new low as well so this will be an interesting week.
The fundamental reasons are the European debt crisis and Americas job market.
No comments:
Post a Comment