The WIG20 Index attacked a Jan's low today but closed below:
This situation can result in both directions, therefore we will just watch it. Brian Shannon from AlphaTrends is much more more optimistic about the US market then I about WSE. If he's right, there is not much to say - the world of finance will go after US indexes without asking too much.
The intraday the WIG Index chart looks interesting (thanks to Stooq):
The possible formation there is Triangle, Symmetrical Bottoms (formation 40, Encyclopedia Of Chart Patterns, T.N.Bulkowski), which is a continuation pattern. Nevertheless, please remember, triangles are not the most reliable formations (also the intraday formations tend to fail more often than those in wider timeframes). However, once a breakout occurs, the prices tend to keep going. For statistics check the Encyclopedia.
The polish mutual funds sold stocks in Jun (record high 48,28% of all transactions' information), but the situation stabilized now and in Jul only 27,59% of total transactions were sells (after Holder news here (polish)):
In comparison to the monthly WIG index it could mean that mutual funds would be selling on tops (trying to get best prices) now, pressing the market down.
Sources:
[http://stooq.pl/q/a/?s=wig]
[http://www.holder.com.pl/fm.shtml?id=4138&fm=11154&c=33951744012 (polish)]
[http://alphatrends.blogspot.com/2008/08/stock-market-video-trend-analysis-81408.html]
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