I’m paying special attention to these two charts in this case: SP500 and EUROSTOXX50. Both are turning south despite Bernanke and Draghi making their announcements of “whatever amounts easing will be given if need be”. I mean… What more can they promise that should in most cases start a major rally. It quite doesn’t seem to be the case at least for now. This could be the very starting point of a bigger downside slide with the non existent positive effect from the central bankers. Just add some few more bad news and the soup might start boiling hot.
Technically the situation is pretty self explanatory. Especially note the letters A on the right side. I put them there to point out that the lower side of the 100 day regression channel (which is normally my most consistent support level) is now touched and it probably holds the slide pretty even as long as the 100 day linear regression curve keeps even. Once that one starts also sliding (a few days away unless the market bounces back in a frisky manner) that means the channel is going to start giving away and the markets can go into falling at least by the bias pointed out by the 100 day LinReg curve. That is when I’ll consider starting shorting the markets by trend (unless the prices have gone into a free fall before I’ve been able to step in :D).
But I only am willing to take it one day at time.
No visionary fortune telling here. There are enough of those gyus out there :D