– First time since financial chrisis some years ago we have now first impulse for downside. SPX has not done this yet but around 1050 it would be there also. French CAC is missing only few minus percents more and 5 down is confirmed.
This is pretty dramatic event for StockIndex because it suggest the trend itself has turned now also.
EuroStoxx as well as Swiss, IBEX looks alike missing fifth which is reasonable small anymore if considering overall how large these movements are. My high recommendation to start looking W3/W5 divergences to develop for entire stockmarket globally, which should at some stage offer also very reasonable bounce if major W3/W5 EW divergence comes.
Attatched charts are French, Spain, EuroStoxx and German StockMarket Indexes.
What to think about this all ?
Well, damage is done allready and it was big mistake by DAX / Frankfurt boys to give fifth wave down, bears have weapon in their hands now, however, so far it is also only market which has done so (if not looking more south-european markets yet), but bounce hunters might find this attractive as well when little bit more time and price has developed further (W3/W5), globally we might have something bigger as upside correction ahead.
Edit: Many speak about SPX-1100 as bottom, but with futures this is only European/US market hours bottom, week ago bottom so far with SPX was done in Asian market as 1068.5-1070 which is the most low seen so far.
With ~1050 five wave would be there and I assume there we are going before month change.
