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In our latest Weekly Market Review dated 27th July 2019 and titled “MARKET TOP” we were making the bold call that equity markets were on the verge of turning south significantly after the FED meeting this week.

This came on the back of our post titled GET OUT OF EQUITIES posted a few weeks ago calling for prudence and predicting an extremely volatile summer and second half of the year.

The Jury is not out yet of the FED’s decision but today’s sharp fall in European equity markets is a sign of what may be coming next.

European equity markets closed the day sharply lower with the EUROSTOXX Index down -1.72 % Germany down more than 2 % and Spain, the worst performer down -2.5 %.

The day started badly in Europe despite a relatively positive showing of Asia, but things turned decisively south when Donald Trump tweeted his frustration with the Chinese not buying enough Soya.

It is not our habit to post to comment on daily events, however todays bloodbath in Europe is more than a bad day in the market.

The charts of most indexes are now clearly confirming the SELL signals that we had identified and the technical picture is truly ugly.

We would not be surprised to see a global liquidation phenomenon unfolding in the coming 8 to 10 weeks.

Eurotsoxx 50

Germany DAX 30

France CAC 40

Italy FTSE MIB 30

Spain IBEX 35

Portugal PSI 20

Investors must remain prudent !

This is the beginning of a big move down, not an opportunity to buy a dip !