Bearish the STOXX Europe 50 Index dips below key support at 4,218.62 but bounces back 1.67 points later in the session

• Despite dipping below 4,218.62 as support, market bulls are still in control
• The STOXX Europe 50 Index looks below 4,247.4 (10 day Simple Moving Average) as signpost for new negative trend

The STOXX Europe 50 Index's downtrend has seen it decline 1.79% in 4 days More of the same from yesterday's session: the STOXX Europe 50 Index dipped as low as 4,207 before recovering some lost ground. However, the rebound failed to push the stock to where it started the session (4,245.75) with the STOXX Europe 50 Index closing the day at 4,220.29.

The index has been trending positively for about a month. Approximately 6 days ago, the STOXX Europe 50 Index reached a significant high of 4,297.24 but has struggled to hold onto its gains and declined 1.09% since then.

EuroSTOXX made an initial break below its 10 day Simple Moving Average at 4,247.4, a possible indication of a forthcoming negative trend. The STOXX Europe 50 Index's upper Bollinger Band® is at 4,307 which indicates a further downward move may follow. In contrast, the STOXX Europe 50 Index could begin to recover as it approaches significant support, now 1.67 points away from 4,218.62. Dipping below could be an indication that further losses are ahead.

Looking forward, the STOXX Europe 50 Index is poised to extend its strong downtrend and continue declining.

Fundamental indicators – Germany Business Climate Index released earlier showed a marked improvement to 91.1 from the preceding data of 90.1, but fell short of the 91.4 figure forecast by a consensus of market analysts.

In the meantime, negative performances are also seen in other markets, Dow Jones is down to 33,130, losing 697.1 points, after ending the previous session around 33,827. KOSPI Composite Index lost 1.68% yesterday and closed at 2,459. After ending yesterday's session at 4,079, S&P 500 lost 81.66 points and is trading around 3,997.34.

Upcoming fundamentals: Euro Zone Consumer Price Index figure is projected at 8.6%. It previously stood at 8.5%; data will be released tomorrow at 10:00 UTC.