CAC 40 Holds Support After Extended SelloffCAC 40TVC:CAC40StoneXTradingThe CAC has fallen just under 6% from its record high in around one month, and mostly in a straight line. The fact that August was a bearish outside month coupled with a bearish divergence suggests this pullback could have further to go. However, perhaps it can bounce over the near term, given it is trying to form a base around its 200-day EMA and July low with a bullish divergence on the daily RSI (2). But bulls may be treading a fine line to try and squeeze a decent reward to risk ratio at current levels. Ideally prices could pull back within this week’s range while holding above 8235 to increase the potential R/R. A break above Monday’s high invalidates the weekly pivot point and could assume a move towards the weekly R1, near the 8400 handle. But with the monthly key reversal candle and dominant bearish momentum on the daily chart, bears may be seeking to reload and drive it beneath 8200. Note the June low sits around 8100 for a potential downside target. MS