A new bullish phase could be at the gates of the markets. What are the levels that could disprove this view?

Tomorrow a monthly setup expires and this could lead to new price strength or new declines. Everything is still to be decided even if some oscillators are returning to the upside. In fact, after the recent developments, our Research Department projects the following scenario: a new bullish phase could be at the gates of the markets but it is better to wait for further confirmations.

So, if something does not change tomorrow and the levels indicated in the next paragraphs are confirmed, we could see an increase of 3/5% in the next 30 days of trading. On the contrary, to a decline of the same magnitude.

Let’s proceed step by step.

At 6:31 pm on the trading day on January 13th we read the following prices:

Dax Future

15.941

Eurostoxx Future

4,283.5

Ftse Eb Future

27,610

S&P 500 Index

4,692.60.

The annual fractal projects declines for a few months

In red, our annual forecast for the world stock index on a weekly scale for 2022.

blankWhat were we waiting for this week?

Given a certain uncertainty, the strategy was set to proceed day by day.

A new bullish phase could be at the gates of the markets. What are the levels that could disprove this view?

Dax Future

Very short bearish trend until there is a daily close above 16.003. Long-lasting downsides only with a weekly close of less than 15,844.

Eurostoxx Future

Very short bearish trend until there is a daily close above 4.316. Long lasting drops only with a weekly close below 4,263.5.

Ftse Mib Future

Very short bearish trend until there is a daily close above 27.665. Long-lasting downsides only with a weekly close of less than 27,190.

S&P 500 Index

Very short bullish trend until we see a daily close below 4.638. Lasting highs only with a weekly close above 4,819.

Investment position in progress from a multidays perspective

Flat on the indexes analyzed but there are swings in the making that by tomorrow should confirm the start of a new bullish phase or not. Tomorrow the direction will probably also be decided.

How could Friday’s trading day be conducted?

Difficult to make a reliable forecast.

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