Eurostoxx Index fails to hold above spring highs
EuroStoxx 50 continues to unwind for a second day, after failing to hold above its spring resistance level, near 3900.
The move is also being weighed down by weaker technology stocks after a series of downgrades, while energy companies continue to be hit by falling oil prices.
Switching back to the Euro Stoxx 50 chart, we can see next potential support coming in at 3839, then 3770 respectively.
Meanwhile, the bulls need to trigger a strong upward dynamic in order to extend the medium-term uptrend above its spring highs and the psychological level at 4000.
BREADTH: Mixed signals...
The chart on the right shows our Euro Stoxx 50 bullish% indicator (which measures the number of stocks holding their Point & Figure uptrends), reasserting its short-term uptrend, gaining 4%, to 74%.
In contrast, the faster %10 week MA has failed beneath its August and September peak, near 95% and is starting to look a little top-heavy.
We prefer to hold more of a cautionary stance while this breadth study unwinds.
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