Most indeces, oversold, and testing support, are to take a breather...Sell on any rebound...

Phew! what a month! indeces fell and are now testing supports, be there Fibonacci retracement, moving averages or the lower Bollinger band. Some are oversold, but all are still with downward momentum...We may see a pause, or even a rebound...It is a classical trending market: Just keep the short, sell on strength.. US Indeces, which have been spared so far, are the next ones to collapse...

Eurostoxx Weekly chart: Testing -Fibo- Support

  The index is testing the 62% Fibo retracement, a strong support. It is oversold (stochastic), but there are still downward momentum both on 3-4 weeks and 3-4 months time frame...On  monthly chart, the index is on downtrend...

As a general rule, on a down market, a rebound, an overbought signal are - easy- sell signals. But it is hard to make money on rebound. 
On a flat market, sell on overbought stochastic, and buy on oversold stochastic...






MSCI Asia Pacific Ex Japan weekly chart:

The index is testing moving average, slight oversold, momentum is down, with a sell signal on the MACD indicator.
More downside than Eurostoxx...















S&P500 weekly: the move just started...Dragged down by Europe...

 S&P index has started to fall, testing moving average. It is not oversold, and also has a sell signal on the MACD.

Heading toward the 1270 level within the next 3-4 weeks














CRB index weekly: on support - Fibonacci:

 The commodities index, is testing the last strong Fibo support - for the third time....
 I hope that with all the charts I have been showing, you all start to believe in Fibnacci...The fanatic rationalist that I am had analysed thousands of charts, and these retracements are almost always there... I don't know why...

The CRB index is oversold, with downward momentum. As we are testing a strong support we are to see a rebound or a pause...














Conclusion: Keep the short on European Indeces; Asia Pacific ex Japan indeces and US are going to be dragged down by Europe... Short them...
Remember, on a downward trending market, overbought signal and/or rebound are Sell signal!


Happy investing


Jean