Worrying Time For Indices
It’s a worrying time for indices. As the EURUSD moves in the final stages of the near terms bearish market we need keep our eyes ready for new short signals in the DOW Jones, Dax and the FTSe. Overnight stock indices sold off hard as we continue to see the Dow in a wave 2. We are seeing more cracks in the indices and this certainly is not the start of a Bull market. More like the start of a new bear market in stocks that could take us to at least below 20,000 on the Dow. The FTSE 100 remains structurally sound for an uptrend but we fear for the index if we start to see global markets drop.
Wave 5 has started down and the PTS and wave count are working very well together. It doesn’t mean we can’t go higher for a few hours. Wave 5 target on the PTS is 11387.
Big discussion in the Live Trading Room this morning as we continue to see downside on Cable. We have just hit target 13150 on the Pro-Trading System. However, we are we are a little concerned about the 3 wave Storyteller signal on the daily. We will keep an eye on it.
Trend Predictor short signal on the weekly time frame indicate we could be seeing lower prices next week.
iBig drop overnight makes this the weekly signal (discussed in the video) well under way. If we get a red PTS weekly signal that will confirm a big move is under way taking prices back to 20,000 and below.
A head and shoulders pattern is still in play on the weekly time frame. We are starting to see cracks in this market today. We are at crucial support areas.
Continues to be bearish with red PTS candlesticks. 1252 next target.