Index Strat Risk Target FTSE [B]Flat[/B] DAX [B]Flat[/B] CAC 40 [B]Flat [/B]
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[U]FTSE 100 [/U][/B]
[B][U]
Long-term Technical Outlook[/U][/B]
There is little change to the outlook for the FTSE 100. 5 waves down from the 2007 high are complete and A 3 wave advance is underway now, probably towards the former 4th wave / Fibonacci resistance in the 4676 - 5232 zone. The index should stay above 3876 on its way to mentioned resistance.
[U][B]Short-Term Technical Outlook[/B][/U]
The FTSE broke higher out a rising wedge formation, positioning to test resistance at the 76.4% Fibonacci retracement level near the psychologically significant 4400.00 level. Near-term support is seen at wedge resistance-turned-support, now at 4278.55.
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[U]DAX 30
[/U][/B][B][U]
Long-term Technical Outlook[/U][/B]
A 5 wave decline is also complete in the DAX. Fibonacci resistance is the 5409-5959 zone. The DAX should remain above 4391 on its way to the mentioned levels.
[B][U]
Short-Term Technical Outlook[/U][/B]
German shares are hinting at a downward reversal, showing a Harami candlestick pattern having met resistance at the top of a rising channel. Initial support lines at the 76.4% Fibonacci retracement level.
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[U]CAC 40 _[/U][/B]
[B][U]Long-term Technical Outlook
[/U][/B]
In examining the CAC 40 pattern from the 2007 high, it is possible to count 5 waves down with wave 5 as an ending diagonal. The diagonal is clear on this chart. The index should remain above 2899 on its way to 3691.
[U][B]
Short-Term Technical Outlook
[/B][/U]
In a similar fashion to the DAX, the French benchmark index is hinting at a forthcoming bearish reversal with a Shooting Star candlestick pattern at the top boundary of a rising channel. Initial support is seen at 313487 near February’s swing top.
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[U]IBEX 35 _[/U][/B]
[B][U]Long-term Technical Outlook
[/U][/B]
The rally from the low (6703) is viewed as corrective. The IBEX 35 likely remains above 8416 on its way to Fibonacci resistance, which is the 10369-11493 zone.
[U][B]Short-Term Technical Outlook
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Spain’s benchmark index is working its way through resistance in the 90309-91792 price congestion region. A reversal lower would meet support at the bottom of a rising channel (now at 87917), while a break higher aims at the psychologically significant 95000 handle.
[B]
[U]S&P/MIB INDEX [/U][/B]
[B][U]Long-term Technical Outlook[/U][/B]
It appears that the Milan index needs at least one more low prior to formation of a longer standing bottom. An impulse (5 waves) appears to be unfolding from the 2007 high. Wave 3 is complete at 12332. I wrote last week that “a wave 4 recovery could be large as initial Fibonacci resistance is not until 19543.” The index is closing in on Fibonacci resistance so beware of a top forming in the next few weeks.
[U][B]Short-Term Technical Outlook
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The MIB Index is showing initial signs of a possible bearish reversal with a Dark Cloud Cover candlestick formation ahead of resistance in the 20703-21387 congestion region. Support lines up nearby at a rising trend line (now at 19737).