The stock markets are seeing a corrective bounce and further downside risk remains, says Nicole Elliott, Private Investor, as she joins today’s Tip TV Finance Show to discuss the technical outlook for the FTSE 100, Sensex and the S&P 500.
Stock markets: Start of a new bear market?
Elliott remains surprised by the extend of the stock market rally, noting that they have only retraced what was lost this year.
She remains in the bear camp, and states that the previous selloff only signalled the start of a new bear market, and the October rally can be termed as a corrective bounce.
FTSE: Not a raging bull market
Elliott takes a look at the weekly charts for the FTSE 100 index, and explains that the index is currently seeing a ABC Elliott Wave bounce and has stopped at the half way mark of this year’s range.
She further adds that the moving averages associated with the cloud are definitely bearish, and the index might do a lot of guttering around this year, and see direction in 2016.
The index remains at levels where we started in January 2014, and this isn’t a raging bull market, according to Elliott.
Sensex: Remaining short on the Indian equity index
On the Sensex, Elliott explains that the index saw a double top at record highs and then a selloff, slipping through the correction, and now having corrected 50% of the previous drop.
The index saw a big red candle last week which warrants caution for the bulls. Elliott prefers to remain on the bear camp for the index.
S&P 500: The odd man out
Elliott takes a look at the weekly charts for the S&P 500, noting that the it spent most of the year creating a rounded top, and cannot rule out another brief move to a new high.
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