MDAX update

This MDAX chart is pretty much the same picture we have for many other charts as well - the support lines are getting tested as we speak and its only a matter of time until we break them with medium term target at 65/600. We have established a downtrend once we close below this trend on a weekly basis which should happen but we also will see a counter-trend around mid Feb which will make the bull camp believe the correction is over. We have no oversold conditions yet on daily charts and weekly charts are still overbought hence we have plenty more to go as the positive spin Astro pattern gave most of last year have faded away and a very tough one is right now shaping up. As I had written last year first and second quarter 2010 will be sharply down quarters and towards the end it might even get more ugly as a big crash type of event is what will be the theme for 2011. That's another year and for now markets will keep going down but may struggle around these levels for a brief time.