Recent price action in equities has “done some serious damage to the longer-term charts”, according to Andy Dodd, Head of Technical Research at Louis Capital Markets.
Dodd says that with the exception of the NASDAQ 100, the longer-term trend for equities is downwards and rallies should be seen as selling opportunities in that time frame.
However, in the short-term Dodd says it’s an entirely different story: “Last week finally saw a ‘capitulation move’ in the US and the rally from the lows left bullish short-term reversal signals across the board which suggest more upside in that time frame.”
Read the full report, including an analysis of the following futures markets:
Dow Jones 30
Dow Jones Transportation Index
Shanghai Stock Exchange Composite Index
MSCI World Index
EURO STOXX 50