Referendum, no referendum, resignation, no resignation, stay in Euro or leave, Whopper or Big Mac, Coke or Pepsi... whatever, we are in a bear Market!

What a successions of breaking news! Great for short term punters, if you are on the right side...No change of view since September, we are in a Bear market, where rebounds are violent.  Just wait for an exit level/signal. Eurostoxx tested 2500 resistance, S&P broke the 1250. In October, several equity indeces displayed a "Bullish Engulfing" in their monthly charts. This Japanese candle figure is a bullish reversal signal: it opens the month at lower level than the previous month low to close in end of the month at a higher level than previous month high. In short, October was a month when buyers were stronger than sellers, and we are to have a couple of months of rally, or at least not down...Still the "prepare to get out" recommendation.

S&P 500 Weekly: 1250 test, aiming at 1350

As expected, the S&P reached the 1250 level to even break it. The index is overbought, but still with an upward momentum. In the next few weeks it is to test the 1350 level, with support at 1250. 

Please note that on monthly chart, the momentum is downward.

Same conclusion as the previous month: Too early to exit, for aggressive players, wait, for the others sell some of your long...

Eurostoxx50: Same status as the S&P with different levels...2500 tested as expected, aiming at 2650.

Eurostoxx, S&P500 and several other indexes had exactly the same pattern/status. 

So same conclusion, wait before exit...

Support 2250 (2 std dev), touched 2500, which is now the resistance 2500 (50% fibo retracement), then next 2650 62% retracement)

Dollar Index: Bottoming out

In September, I highlighted that the Dollar index had probably reached its low...well it did and has even increased from 73 to 80 to correct to 77. The momentum is till upward. Keep the dollar...

Conclusion: On what to do, you got it... In the current mess, I just want to quote Napoleon: "In a great nation, the majority are incapable of judging wisely of things"