Equity indices look bearish, signs of stability in bonds - FuturesTechs

Nov 02, 2016, 01:17 PM

The current risk-off in the financial markets is just two days old. With US election results just a week away, investors would want to know if the two-day risk aversion is just a flash in the pan or something serious is about to unfold.

Often the technicals give the advance signal of a major sell-off/rally. Hence, in this segment, we talk to Clive Lambert, Director of FuturesTechs, who sheds light on the technical developments in the major markets and supplements the same with Intermarket analysis.

Watch this video to know if the bond and equity market charts are both screaming in unison about a serious risk aversion ahead

Key points

Bund futures - couple of candles with long lower shadows show signs of stability

Dax futures - 10423 is a key level. Charts suggests further losses are likely

FTSE100 - Gap to fill to 6707 gives us a target, plenty of candles suggesting rallies are being sold into

S&P 500 - Could head lower to 200-DMA at 2075

Cable - nothing on the chart… stuck in the range, we await the breakout

EUR/GBP - Falling wedge breached on the higher side last week

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