23 May 2016 at 20:44 GMT
The OMXS30.I is possibly about to make a new strong directional move in either direction. The larger trend is down until proven otherwise but is the bounce off the Feb 11 lows over? In the chart below I have two scenarios, one bullish and one bearish. The bullish scenario is a longer term bearish abc structure but implies short to medium term movement higher, ideally in a five wave impulse. A daily close above 1351 in the near future would indicate higher prices. The rise should in this case ideally not last longer then 60 days from May 13.
The bearish scenario is one hinting at a very weak market with a short and not very impressive bounce given the previous decline. So far following the April peak we have one five wave bear swing lower that ended on May 13. If we breach this low at 1305 we might get to experience third wave price action to the downside.
Looking at internals in the index we are currently seeing industrial with relative strength and Banks and HM putting pressure...