DEAD CAT BOUNCED

Yesterday and the whole week. The recovery couldn’t succeed, so the market needs to go down further. I have to say the correction is just started and the market might stay in a volatile and bearish mood for few weeks. In the last two weeks the declining market was able to make only the „Dead Cat Bounced” pattern. That means the major falling trend was only broken by brief and short recoveries.

The chart say everything. The rebound failed yesterday and made only a bull trap in the early session of US markets and during the night Asia was falling further and the EU market openings this morning all stock markets are diving.

The bears have arrived. Welcome! After more than 400 days bullish market, we are going to see some bigger correction easily which could be wider than 10%. The DJIA was taken out the 15.750 key resistance level tonight.

The BFM Assets Team.