Markets on Edge After Index Meltdown: Can Bulls Rebound?

We start the new week with a cloud hanging over the markets. The end of last week was brutal for global indices, with sharp declines across the board. The damage wasn’t just price-based—technical patterns turned bearish, with bearish engulfing formations appearing on both daily and weekly charts. That kind of setup raises the risk of a deeper correction—or even the start of a broader bear market.

So far this Monday, the bounce is mild. Indices opened with a slight uptick, but it’s insignificant compared to the drop that came Thursday and Friday. The real question is: Can bulls reclaim control, or will this be a dead-cat bounce?

On the currency front, moves are muted. We’re seeing weakness in defensive currencies like the Swiss franc and Japanese yen, while Australian dollar, euro, and Canadian dollar are showing modest strength.

In commodities, the spotlight is on oil. After a steep Friday drop, the pressure continues. OPEC+ announced a production increase of over 500,000 barrels/day for September, which immediately hit sentiment. The recent bullish correction in oil looks over for now.

Gold rallied into the weekend and opened flat on Monday. Technically, it’s approaching a potential right shoulder of a head and shoulders pattern, which could turn into a bearish setup. Silver, which lagged gold on Friday, is starting Monday stronger.

On the earnings calendar, only one major name is on watch: Palantir, which reports after the market close.

The macro calendar is light. Monday brings no tier-1 data, and the first half of the week is likely to be dominated by technicals and sentiment rather than economic releases.

Source: https://www.axiory.com/analytics/market-news/markets-on-edge-after-index-meltdown-can-bulls-reb