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STOXX 50 Technical Analysis
STOXX50 has rallied pretty significantly as well, running into a little bit of trouble near the 5,400 euro level, but has shown signs of hesitation. And that being said, we are back in the same consolidation area we had been in before, so it does make a certain amount of sense that we’re just going back to the same behavior. In other words, I think we are going to go back and forth, waiting for some type of catalyst to make European stocks rally. I don’t think we’re that far from it, quite frankly, but we do need to spend some time burning off some of the excess and quite frankly, panic that the market had over the previous couple of weeks.
STOXX600 Technical Analysis
The STOXX600 looks very similar to it rallied as it’s hanging around the 550 area. If we can break above there, then the 560 level gets targeted. The sell-off on Friday has been wiped out and we are right back to where we were when we opened on Friday. That’s a good sign. The 50-day EMA offered support as well, so that’s worth paying close attention to. And I do think that it’s probably only a matter of time before buyers step in on each and every dip, as it seems to be a value proposition for most traders.
I have no interest in shorting European indices, not the three in this video, not the MIB, not the AMX, not the FTSE 100. I believe that most indices look very positive as they look at more spending, driving more liquidity into the markets.
For a look at all of today’s economic events, check out our economic calendar.
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