- European and UK equity markets are seeing very short-term downside correction themes emerging over the past 2-3 sessions.
- This has been a reaction to a combination of;
- bullish fatigue from June rallies
- the proximity of notable resistance factors
- the strengthening of the Euro, particularly EURUSD
- Although the intermediate-term outlook for the major averages, including the DAX and the FTSE 100 is still to the upside, the short-term threat is for further corrections lowed.
- Here we spotlight the pan-European equity benchmark index, the EURO STOXX 50.
EURO STOXX 50 downside bias after stall at our 3463 resistance
A rebound stall exactly at our 3463 resistance on Monday after Friday’s failure back from a spike to a new cycle high (to 3487) and a push below 3433 support this morning keeping the bias lower Tuesday.
The early June push through 3400 set an intermediate-term bull trend.
- We see a downside bias through 3429; break here aims for 3411, possibly towards 3397.
- But above 3463 opens risk up maybe towards 3487.
- Intermediate-term Outlook – Upside Risks: We see an upside risk for 3500, 3533, 3576 and 3681.
What Changes This? Below 3350 shifts the intermediate-term outlook back to neutral; through 3309 is needed for an intermediate-term bear theme.
4 Hour EURO STOXX 50 Chart