In all aspects Eurostoxx50 Index is extremely bullish, while US mkts are not so much.
Last daily candle is a huge Hanging Man (normally a good indication for short term trend exhaustion), daily Slow Stoch is overbought and started to point down, and watch 4 Hrs ADX, which is close to 50! ADX is a measure of trend's strength, but most of the time when it is so high, market starts a correction.
How to play the correction? There are two ways: you either try to sell it in a spike ard 3220-3240, or you watch for the 4 Hrs Kijun line and sell the break below, which in line with daily Tenkan and horizontal line means a sell below 3175.
In any case do not allocate more than 0,5 unit on this trade, as again, at the moment it is an initial counter trend trade, and we need to see more signals to be confident with building bigger shorts.
Last daily candle is a huge Hanging Man (normally a good indication for short term trend exhaustion), daily Slow Stoch is overbought and started to point down, and watch 4 Hrs ADX, which is close to 50! ADX is a measure of trend's strength, but most of the time when it is so high, market starts a correction.
How to play the correction? There are two ways: you either try to sell it in a spike ard 3220-3240, or you watch for the 4 Hrs Kijun line and sell the break below, which in line with daily Tenkan and horizontal line means a sell below 3175.
In any case do not allocate more than 0,5 unit on this trade, as again, at the moment it is an initial counter trend trade, and we need to see more signals to be confident with building bigger shorts.