Equity Bear Cycle Extends
Jun-16 14:28By: Taso Anastasiou
Technical Analysis Graph
- Equity markets are in a clear downtrend and indications are that, from a technical perspective, the broader bear cycle is not over. A number of technical trend signals continue to highlight a bearish condition.
- Moving average studies - the 20- and 50-day EMAs - are in a bear mode condition and recent corrections have stalled at price levels around the 50-day EMA. The 50-day EMA is regarded as a key resistance when the market is trending down.
- A broader bearish price sequence of lower lows and lows also clearly highlights a bearish direction and a sell-off to fresh cycle lows in a number of indices this week, has confirmed an extension of this price pattern.
