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.

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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