Between Greed & Fear

Markets finally show some green as global indices rally 1%-1.2% after the DAX and DOW reached correction territory—defined as 10% decline from the high. Both indices have also reached their 200-DMA, which is not the case for SPY -- It neither reached its 200-DMA (3046), nor hit the 10% extension (-8.8%). Is this a matter of insignificant detail? Not quite. The most basic of systems trading is based on these landmarks, which  denote the difference between a correction and bear market and are usually used to taper in gradual bids or short-covering. Markets sustain some stabilisation thanks to gradual outflows from bonds after the 10-year yields had hit a new low last night. All currencies are trading lower against the US dollar, while gold may sustain further pullback until possibly encountering the next key support at 1615/20. This week's probing long in the DAX was stopped out, so we let the air clear out to get better visibility of technicals balances. A new Premium trade has been sent out, accompanied by charts and the Premium video below.

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