- The mid-December “risk off” moves across global financial markets (reacting to fears of a global slowdown), were reinforced on Monday by US equity averages plunging through recent Q4 lows.
- Moreover, this has placed the Dow Jones Industrial Average, the Nasdaq 100 and the S&P 500 all close to he 2018 lows, set in Q1.
- Furthermore, European equity indices have also been pulled down close to recent Q4 and 2018 lows, with risks for more bearish developments here too.
- Below we spotlight the S&P 500 E-mini future and the pan-European equity benchmark, the DJ Euro STOXX 50.
S&P 500 E-mini bear trend re-energizes
A plunge Monday as expected to a new bear move low through 2583.0 and numerous other supports to just hold at the 2018 low at 2529.0, to reinforce Friday’s notable breakdown through 2621.25 support and fully re-energizing bear forces from the earlier December plunge below the key Q4 support low at 2603.0, to keep the bias to the downside Tuesday.
The December plunge through 2603.0 set an intermediate-term bear trend.
- We see a downside bias through 2542/41; break here aims for key 2530.5/29.0 and then 2511.75 and 2500.0, maybe 2485.0.
- But above 2578/80 aims for 2602.25 and opens risk up to 2613.75.
Intermediate-term Outlook – Downside Risks: We see a downside risk for 2529.0.
- Lower targets would be 2500.0 and 2415.75.
- What Changes This? Above 2720.75 shifts the outlook back to neutral; above 2814.0 is needed for a bull theme.
4 Hour Chart
DJ Euro STOXX 50 risks stay lower
A Monday setback below 3068/67 and better 3058 and 3036 supports, to reinforce Friday’s selloff, further rejecting last week’s recovery effort and resuming bear forces from the earlier December plunge (below key 3080 support), to keep the bias lower Tuesday.
The early December plunge to break below the October swing low ay 3080 set an intermediate-term bear trend.
- We see a downside bias for 3040; break here aims for 3030 and maybe towards 3017 (even 3002/00).
- But above 3075 aims for 3103/05 and opens risk up to 3124.
Intermediate-term Outlook – Downside Risks: We see a downside risk for 3000.
- Lower targets would be 2981 and 2731.
- What Changes This? Above 3166 shifts the outlook back to neutral; above 3239 is
4 Hour Chart