After a rocky first half of the year in the stock markets around the world, indices have fallen well off their highs as they enter correction territory. Global inflation and slowing economic growth has investors fearful of the risk-on environment, but that sentiment is bound to shift back at some point. Here are some possible setups on these indices as well as their potential bottoms for the next bull market.
England's stock market falls over 3% today, although price isn't too far from the highs in $7,690s. A triple bottom level another 3% lower looks like the index's first target price for a turnaround. The second level is a double bottom around 7% lower should the market continue to flop. Recent rate hikes and a retail slowdown has sunk shares today as well as sentiment, so a continuation to the downside seems likely.
Japan's stock market index is currently 16.84% off the highs from earlier this year as price falls another 3% today with the rest of the global equities. A potential bottom on this 1D timeframe looks like $24,482 where there is a previous bottom. Price could definitively sink lower, however, there are not many clean levels of support that would suggest an evident sign for a reversion.
Germany's index is down 4% today after FOMC and a rise in utility prices from slashing gas supply in the country. GER30 looks promising at the 61.8% Fibonacci retracement zone. More specifically, a previous resistance and support level at $11,311 suggest that price will move here which is deep into correction territory from 2020.
The S&P falls three and a half percent today in the aftermath of FOMC yesterday and the 75 bp rate hike. Three levels give us an idea where price might bottom out, but one of them has already been broken. The levels are at $3668, $3587 and $3392 respectively. The first two levels are basic long-term levels of support, but the last target is key since it is the highs of 2020 pre-pandemic.
The NASDAQ is taking the biggest loss today after being down over 4%. The index is 34% off the highs and stuck in a grossly sold off bear market. It looks like price will keep falling to a previous bottom around $10,699. If that level gets broken, the index could move to the highs of 2020 along with the SPX500 which would be at $9748, another 12.50% lower than current price.
Just before the scheduled shutdown at 12:01 am on Sunday, Congress voted to extend the deadline for another 45 days. Yields jumped higher to above 5.1% which has remained elevated for some time. As we enter an historically bullish month for the indices, here are some setups on dollar, gold and index setups EdgeFinder Analysis […]
GDP numbers came in lower than expected in the US, marking the third straight drop in economic output. This is usually good news for the stock market indices and gold, however, bond yields continue to hold up above 5.1%. Here are some potential trade setups for both dollar and index longs depending on how the […]
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