FTSE MIB: 1 October 2012, Monday, 1.15pm

FTSE MIB: 1 October 2012, Monday, 1.15pm

The following is intradays' chart of FTSE MIB (Italy Index). 

As per warned last 2 weeks on market bearishness, FTSE MIB had indeed broken down the RED SUPPORTS and PINK SUPPORTS as above. 

There is a high probability of broad European rebound for a few hours (once Europe opens) before resuming a selldown after US market opens.

As per severely warned since QE3 was announced, the Donovan-BMSTSI (measurement of broad market shorts) had been stacking up everyday, suggesting very high confidence shorts by Big Hands while everyone were buying the markets for investments and tradings. One should had been dumping on this last escape wave that had already ended and should had invested in mid-long term shorts.

The Euro Crisis is back in play, unless Italy can negate the pink SUPPORT-TURNED-RESISTANCE at around 15700 points. Only a reclamation of the above PINK lines will stop a continuation of the selldowns. Otherwise the markets will keep selling down, which is to be expected since QE3 was a convincing buy/holding on to investments, and the majority of naive market participants are supposed to lose money.

Per expected, Australian Dollar (AUD-USD) is continuing to sell down below $1.04000.
Commodities will carry on its broad sell off.