One of the best contrarian indicator gives buy signals

Numerous global indices were deeply oversold and are now trying to break out.
Dj Euro Stoxx 50, Russia, Brasil, Netherlands, Helsinki, Ireland.. all are flashing short term TD Sequential (12/13's) buy signals.( green arrows)

Short term breakout?

While all my long term technical models are still bearish (chart1), I suspect that the SP500 made a short term bullish breakout yesterday.
As you can see on this daily chart, the index was able to rise above an horizontal resistance and is now close to break the downtrend active since May 08.
Today will be an important day as the DJ Euro Stoxx 50 will try to challenge the 3400 level.

End of this rally?

In such sustained bear markets, trend reversals are usually very sharp (V bottom pattern) and amplified by short covering. This is why we I'm not sure that the recent bullish rally will be sustained as the SP500 and the DJ Euro Stoxx 50 are now close to resistance zones (respectively 1300 and 3400)

The Financials stocks are probably the key here as the rally in US financial stocks has driven prices near a key Fibonacci level.(38.2%)

A failure to break above the 72 level could see the index drop back quickly.

€/$

The US dollar continues its short-term rebound and continues to profit from falling commodity prices.A trading range is expected between 1.6 and 1.54

Short term bollinger buy&sell signals DJ Euro Stoxx 50

"click on the table to enlarge"

Brent

The Brent recently validates a minor double top pattern.

The minimun target of this bearish pattern is 115$.

The long term trend remains up.

SP 500 Elliott Waves targets Part 2

The trend remains bearish for the SP00 and all technical bounce attempts have failed so far.

As you can see on the chart, the targets of this “devastating” C wave for the SP500 is

C= A : 1163.61

C= 1.38XA : 1066.84 (note that this corresponds to the bottom of wave 4)

C= 1.62XA : 1005.73

Bear markets sometimes extend well beyond what we can imagine.