FTSE 100 surge leads European stock averages higher

Intermediate
  • A positive follow through for the UK benchmark averages on Monday, as the FTSE 100 led the European equity indices higher (see the UK FTSE 100 Index Chart, the German DAX Index chart and the Euro STOXX 50 Index chart and commentary)
  • This has reflected a positive follow-through for the UK market after last week’s election result, which saw the Conservative party secure an 80-seat majority.
  • This has buoyed both UK and global markets as it has created stability, alongside likely ensuring a more orderly Brexit process.
  • European stock averages, the German DAX and the pan-European share yardstick, the Euro STOXX 50 have also benefited, pushing back close to and through recent, multi-month cycle highs respectively.

FTSE 100: Intermediate-term bullish shift

A very aggressive advance Monday through key 7442 and then further multiple resistances up to 7555, for an intermediate-term bullish shift and to keep risks still higher for Tuesday.

  • We see an upside bias for 7555 break here aims for 7577 and 7597.5/7600, maybe 7631 and key 7666.
  • But below 7500/7495 opens risk down to 7443, maybe 7403/00.

Intermediate-term outlook

A mid-December surge through the key 7442 peak signalled an intermediate-term bullish shift.

Upside risks: We see an upside risk for and 7666 and 7750.

What changes this? Below 7194 shifts the intermediate-term outlook to neutral and below 7129.5 to an intermediate-term bear theme.

Daily FTSE 100 Index Chart

ftse 100

German DAX: Bullish tone

A firm advance Monday above 13385/390 resistance, to build on the Thursday-Friday surge above the key 13374 cycle peak, to sustain the intermediate-term bull trend and whilst above 13325/20 we see the threat to the upside Tuesday.

  • We see an upside bias for 13429.5 and 13455.5; break here aims for 13500, maybe 13552.5.
  • But below 13325/20 opens risk down towards 13253, maybe 13190.

Intermediate-term outlook

A December surge through the key 13374 peak signalled an intermediate-term bullish shift.

Upside risks: We see an upside risk for 13500, 13552.5 and 13750.

What changes this? Below 13040/023.5 shifts the intermediate-term outlook to neutral and below 12882 to an intermediate-term bear theme.

4 Hour German DAX Index Chart

Dax index

EURO STOXX 50: Bull trend extends

A Monday rally to another new cycle high just above 3771 to 3777, to reinforce the Thursday-Friday surge above the 3727/29 peaks, with the setback holding at 3722 new support, to keep risks higher for Tuesday.

  • We see an upside bias for 3777/85; break here aims for 3800 and maybe 3814.
  • But below 3744 opens risk down to 3722, maybe towards 3716.

Intermediate-term outlook

A December surge through the key 3729 peak signalled an intermediate-term bullish shift.

Upside risks: We see an upside risk for and 3843 and 4000.

What changes this? Below 3622 shifts the intermediate-term outlook to neutral and below 3591 to an intermediate-term bear theme.

4 Hour Euro STOXX 50 Index Chart

Euro Stoxx

Steve Miley

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

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