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Charting indices: equity bounces likely to be short-term

After the massive selloff on the equity markets yesterday breaking major support levels, we see today a bounce back, but IG analyst Joshua Mahony warns that this is not in any shape or form the end of the selloff, but only a brief reprisal.

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.

On the FTSE 100, the recent series of lower highs and lower lows would tend to signal that the sellers could come back very soon. It is a similar picture on the DAX and on the France 40, even though the latter seems to have been recently more a rangebound market; and the Dow Jones, although it hasn’t necessarily looked as bearish as its European counterparts.

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