CAC Forecast October 10, 2014, Technical Analysis

The CAC initially gapped higher at the open, but then turned back around and fell apart. The market closed at 4140, and looks likely to continue. The 4000 level below is our “floor”, and as a result we are aren’t comfortable selling until we break below that level. The Parisian markets are oversold as far as we can tell, and as a result we feel value hunters will appear. However, we don’t have the appropriate set up to start buying quite yet, keeping us on the sidelines for the time being as we need to see what shakes out.