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Market Analysis - January 4th: S&P 500 and DAX Facing Bearish Trends

Welcome to another insightful market analysis! Today, we dive into the recent developments, starting with the S&P 500 in the daily chart.

S&P 500: Bearish Momentum Continues

Yesterday, the S&P 500 witnessed a significant bearish signal as it broke below the 10 EMA for the first time in weeks. The long bearish daily candle confirmed the bearish sentiment from the previous day. Currently trading around 4730 points, the bearish momentum may persist, especially as long as we remain below the 10 EMA at 4742 points. The next critical support is at the 50 EMA, standing at 4591 points. A further decline could target the support at 4540 points. A positive turn would require breaking above the previous day's high at 4750 points and surpassing the 50 EMA, paving the way for potential gains towards 4800 points.


DAX: Battling Downward Pressure

Turning our attention to the DAX, we observed a substantial drop below the 10 EMA on the previous day. Despite an initial sideways movement, Tuesday's upward momentum to 17,000 points was short-lived. A bearish reversal led to Wednesday's close at 16719 points, just above the 10 EMA. The bearish daily candle hinted at further weakness. If the downtrend persists, the next target is the support at 16400 points, followed by 16224 points, where the 50 EMA is located.



Short and Long Levels: Observing the Landscape

In the current market scenario, specific short and long levels are not provided. It is prudent to observe the DAX's further development post the sharp downward movement. Whether the 16400 points level acts as a support or if the market tests the next level around 16122 points will provide clearer insights. Long-term prospects indicate a potential return to rising prices after the ongoing correction, as long as we stay above the Ichimoku cloud in the daily chart.

Conclusion

That concludes today's market analysis for Thursday. Stay tuned for more updates and insights. Wishing you success in today's trading endeavors!


Source References and Further Readings:

  1. Fear & Greed Index - Google Site:

    • "Fear & Greed Index" Google Site: Fear & Greed Index
    • Explore comprehensive information and in-depth explanations about the Fear & Greed Index on this dedicated Google Site.

  2. CNN Business - Fear & Greed Index:

    • CNN Business - Fear & Greed Index: CNN Business
    • Access the Fear & Greed Index on CNN Business for real-time market evaluations.

  3. Tradingview - Charts and Analyses:

    • Tradingview: Tradingview
    • Utilize this extensive platform for financial charts and analyses, keeping track of current market developments.

Note: The linked Google Site provides in-depth information about the Fear & Greed Index. On CNN Business, you can access the Fear & Greed Index directly for up-to-date market evaluations. Tradingview offers a wide range of charts and analyses for various financial instruments.

Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Any trading decisions based on the information presented in this analysis are the sole responsibility of the reader. It is strongly recommended to consult with a qualified financial advisor as needed.

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