European averages join US indices with bullish extensions

  • In yesterday’s report here we highlighted that the main US equity indices have produced aggressive rallies back higher this week, with both the Nasdaq 100 and S&P 500 hitting new highs for 2019.
  • This has been driven by solid US macroeconomic data and an easing of global growth concerns, as the UK has moved away from a No Deal Brexit scenario with the recent votes in the UK Parliament.
  • Over the past 24 hours, other European stock indices have played a technical catch up, with some of the major European stock averages also now achieving new highs for 2019.
  • Here we focus on the broad European benchmark average, the EURO STOXX 50 and the UK yardstick, the FTSE 100.

EURO STOXX 50 bull trend extends

Another firm advance Thursday to a new cycle high, having rebounded Wednesday from the bull trend line from mid-February (off of 3202), to keep risks back higher for Friday.

We see an intermediate-term bull theme.

For Today:

  • We see an upside bias for 3266; break here aims for 3273 and 3289.
  • But below 3249 opens risk down to 3240, which we would look to try to hold. Below aims for 3229.

Intermediate-term Outlook – Upside Risks: We see an upside risk for 3315.

  • Higher targets would be 3344 and 3412.
  • What Changes This? Below 3188 shifts the outlook back to neutral; through 3168 is needed for a bear theme.

4 Hour Chart


FTSE 100 bias stays higher

A Thursday probe above the top of the February-March consolidation Triangle pattern, to then stall exactly at the February and 2019 cycle high at 7133.5, still setting a positive tone and aiming higher for Friday.

The early February push above 6998.5 sets an intermediate-term bull trend.

For Today:

  • We see an upside bias for 7133.5; break here aims towards 7150 and 7177, possibly 7200/01.
  • But below 7074 opens risk down to 7049.5/38.5 maybe even 7023 and 6990.5.

 Intermediate-term Outlook – Upside Risks: We see an upside risk for 7455.5 and 7654.5.

  • What Changes This? Below 7000.5 shifts the intermediate-term outlook straight to a bear theme.

Daily Chart


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Current Market Analysis
Euro breaks down, GBPCAD threatens upside

US Dollar Index holds support and rebounds EURUSD seeds multiple negative signals, downside risks GBPUSD sends buy signal GBPCAD sets up more bullish AUDUSD negative and USDCAD buy signal USDTRY and USDBRL surge

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