Bear Market rally, from oversold territory, prepare to get out...

What a month! As most things in life, one must not act on panic or euphoria...Had you sold on the back of the August fall, you would have missed the opportunity to exit at a higher level. OK, sounds easier said than done! That is where Technical Analysis brings its benefit: with Clear signals and levels to act upon. 
For the Black Jack players amongst you, knowing the stats table (ie when to hit /split/double/stay vs the dealer's card) will save you lots of money! (Do read the famous E. Thorp Beat the Dealer. Mr Thorp, a Mathematicien (MIT), proved that it was possible to have an edge; he is also a successfull Hedge Fund manager...)

Back to the Markets: indeces, extremely oversold, have rebounded as expected. We are probably close to SELL level...So be ready to pull the trigger. 




EuroStoxx50: As mentioned last month, it was expected to rebound to 2350 level. The index is short term overbought and will correct for the next few days, but on a 2-3 weeks view, momentum is still upward, and 2500 is a still the next target. 

S&P500: As with the Eurostoxx50, S&P500 index has rebounded from oversold level (and a positive divergence). Though overbought in the short term (one week), on a 2-3 week time frame, the index is still upward trending, and 1250 is the target (this corresponds to the 62% Fibonacci retracement on the recent collapse).






Conclusion: Equity indeces, Commodity have rebounded from extremely oversold levels. The Bear market rebound/rally offers a great opportunity to sell. 
There is still upside so I would recommend for the most agressive of you, to wait before sell; and for the others, start to exit some (half?) of your longs... 
Happy Investing