In the somewhat robotic format of the weekly report, we noted that the Euro 50 index is still bearish. But I want to dial in to some daily chart views of Europe to show a picture that is on the verge of flipping bullish in some areas while, very logically, the weaker countries lag.
The Euro 50 has broken the 2016 trend and is dealing with the SMA 200.
The German DAX made a lot of headlines last week with a big surge and targets above 11,000 on a short-term basis.
The French CAC would target 5000 if the break above the SMA 200 holds.
Spain’s IBEX could be setting up for something similar, but it is below the SMA 200 and the trend line.
Italy is worse still.
In the past we have used the ratios of Spain and Italy (more speculative) to the STOXX or DAX in order to show the speculative impulse or lack of same in Europe. Today, there is no positive indication on speculation. Unless that spirit comes to Europe as it has in the US, these bounces in individual indexes do not look to go beyond the short-term.