Bulls tried to invert the fall and failed.
The futures chart show us a reverse H&S in intraday time frame with a descending neckline (in the Nasdaq100 this line is perfectly horizontal) and completely failed the aproach of the right sholder.
Normaly, and it happened for several times in the oposite direction during the rally up, this kind of failure results in an extension of the pattern in the oposite direction.
I expect a target betwwen 1,618 and 2.0 fibo around 3200 in the index and a little lower in futures around 3175.
Here we might attend the first fight between bears and bulls with favorable forecast for bears. Second round should happen in 3000 where a strong reaction of the markets could take place.
And yes, I'm very pessimistic about equity markets in next years. The World economy is completely in idle mode and for each currency created a lot of the existing is being destroyed IMO.
We should expect the continuation of the bear market which should, under normal conditions, have happened in May or June.
The futures chart show us a reverse H&S in intraday time frame with a descending neckline (in the Nasdaq100 this line is perfectly horizontal) and completely failed the aproach of the right sholder.
Normaly, and it happened for several times in the oposite direction during the rally up, this kind of failure results in an extension of the pattern in the oposite direction.
I expect a target betwwen 1,618 and 2.0 fibo around 3200 in the index and a little lower in futures around 3175.
Here we might attend the first fight between bears and bulls with favorable forecast for bears. Second round should happen in 3000 where a strong reaction of the markets could take place.
And yes, I'm very pessimistic about equity markets in next years. The World economy is completely in idle mode and for each currency created a lot of the existing is being destroyed IMO.
We should expect the continuation of the bear market which should, under normal conditions, have happened in May or June.