So this is it? The official start of the bear market? It is certain that for the past few weeks we are in a correction stage but it seems that the correction changed into a proper down trend. Interestingly, we do not have any major fundamental events that could have trigger this. Italy, rising rates in US? Oh please, that is not enough. Something should come up soon, Deutsche Bank (DE:DBKGn) looks promising.
S&P 500 is officially negative for the 2018. The price broke the major up trendline and then, tested that as a resistance. Test was positive for the sellers and resulted with a further drop. The next target is the yellow area around 2560 points.
Next instrument is the DAX, where we are in a worse situation than on S&P 500. Here, the price is under the influence of a huge head and shoulders pattern – proper trend reversal formation. The neckline was already broken and tested as a resistance. The sell signal is ON!
Last one here is the Nikkei 225, where the price moves similarly to the SPX. Here we also broke the up trendline and are aiming the horizontal support. In this case, it is also marked with a yellow colour and is on the 20300 points. Chances that we will get there are quite high!