3 May 2022

Flash Crash – In Italy aid for 14 billion – #SP500 #Nasdaq100 #FTMIB #Oil – May 3, 2022 (pubblicato alle ore 08:08)

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Flash Crash – In Italy aid for 14 billion – SP500 Nasdaq100 FTMIB Oil – May 3, 2022

A day of ordinary madness yesterday. Due to an error (or so they said), a Citi trader from the London desk made a wrong operation that saw a selloff of Swedish shares, massacring the main European index and wiping out 300 billion euros.

Stockholm OMX Index – hourly candlestick

In one hour there was a drop of 7.64%.


  • FTMIB -1,63%
  • DAX -1,13%
  • EuroStoXX -1,85%%
  • Nasdaq 100 +1,72%%
  • S&P500 +0,57%

VIX -3,17%

BTP/Bund spread is at 189.4 and oil is up to $104.99

Not just Flash Crash

The Stockholm Stock Exchange brought with it most of the European stock exchanges and also some of the US ones which reacted immediately and better.

In Italy we lost almost 4 percentage points and then recovered, but obviously many of the previously set trades and various stop losses were missed. So the day was then characterized by repositioning.

But the MIB index – with the spread so high – is still under pressure, and this chart is still current.

FTMIB – Weekly candlestick – Bearish hypothesis

Some time ago I talked about the possibility of a descent according to two possible bearish waves – ABC and 12345 (in white).  Looking at the trend of weekly candles updated to date highlighted with the red wave, the hypothesis made earlier seems to gain strength. Of course these are only hypothesis and this could also be only an accumulation phase to then start upwards again. For now, however, the bearish scenario is still very strong.

In the meantime, Italy has approved an aid package of 14 billion euros to help companies and consumers affected by rising energy prices. The maneuver will be partly financed by an unspent portion of 10 billion euros in loans and by increasing a tax on energy company profits to 25% from 10% – watch out for energy stocks then.

The U.S. is considering reducing U.S. tariffs on imports from China to address inflation and give Americans some relief.

Signal & analysis on 1-day candlestick

S&P 500 

Before seeing the daily situation, let’s have a look at the hourly situation of the SP500

SP500 (cfd) -hourly candlestick

The day had set up downward in the afternoon – also following the morning flash crash.  But then, in the last hour of trading there was a jump of 2 percentage points and the climb continued until this morning.

As for the daily candle, we are still around the relevant support level – although a bit weak – and clinging to the 400-period average.

SP5600 cfd – daily candlestick
  • Short (and/or close Long) on SPX at the price of 4155
    STOP LOSS / Reversal price: 4263

    Swing high: 4308.45
    Swing low: 4370.3

    Updated signals HERE


Same story for the Nasdaq100, rebound with prices below the reversal price.

The same situation as yesterday. Our model signals short on all time frames considered (daily, weekly, monthly). MACD negative, ADX negative but decreasing. Prices below the KUMO. We are still on an important support level 13000 .

Nasdaq 100 – daily candlestick
  • Short (and/or close Long) on NDX at the price of 13075
    STOP LOSS / Reversal price: 13376

    Swing high: 13542.56.
    Swing low: 13788.96

    Updated signals HERE


We are in lateral since March 16, walking on the edge of the KUMO. Very uncertain situation that requires waiting and patience. Signals in this moment are of little use. However inserted in a bearish channel.

  • Long (and/or close Short) on FTMIB at the price of 23807
    STOP LOSS / Reversal price: 23729

Swing high: 24983.63.
Swing low: 23304.27

Updated signals HERE


Petrolio . Future – Candela giornaliera
  • Long (and/or close Short) on CL1! at the price of 105.09
    STOP LOSS / Reversal price: 100

    Swing high: 109.2
    Swing low: 95.28

    Our LONG / SHORT levels and targets HERE

This is just our trading and not an invitation to trade in the financial markets.

I segnali e i grafici presenti su questo sito sono elaborati su dati TradingView

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