Are These Some Signs Of Reversal In The Market?

Markets are rallying after today’s ISM figures.

As we wrote earlier today, we reached some support levels this morning, as equities traded on very light volume.

Currently both DAX and Stoxx 50 are flirting with negative trend lines formed over the past days.

Today’s action might form a hammer, and we get another mega squeeze set up.

We will be back with more charts later this evening.

For now, some important levels to keep in mind. Note the wedge in Morgan Stanley. It has gotten a lot of beating lately , and could bounce aggressively. Below Dax etc.

(Click to enlarge)

Dax Oct. 2

Stoxx 50.

Stoxx 50 Oct

ES Futures.

ES Futures

Watch out getting too bearish on MS hereā€¦.

Morgan Stanley Chart
Stoxx 50 Oct. 1

This post originally appeared at The Trader.

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