DEAD CAT REBOUNCED

This week is not the best one for the markets after three days of falling Thursday was the first winning day without any impressive jump, the market only delivered a “Dead Cat Rebounce” pattern, so might come another negative day today. Not only US markets are suffering by losses, but European indices are also in negative territory in weekly basis.

This Dad Cat pattern usually means that one modest green day after couple of following days would mean further losses. That is another warning sign that from the intraday record in the middle of session the indices almost turned into falling mood at closed at daily lowest points.

Yesterday data:

• DJIA +0.36%
• S&P 500 + 0.45%
• Nasdaq +0.52%

So, we moved to our bunker and reduced massively in the last couple of days our exposure on long side of indices and waiting for some bullish break out confirmation. Namely 17.550 is the resistance level of DJIA below that key level we are on hold and waiting to jump in again.

The BFM Assets Team.