Short-Term (days/weeks): DJ Eurostoxx 50 still negative, but probably close to a low

Short-Term (days/weeks): still negative, but probably close to a low
The DJ Eurostoxx 50 was sharply lower last week, breaching trend support from the
September 2022 low as Daily OB/OS momentum turned negative.
At the close on Friday, the DJ Eurostoxx 50 was testing short-term support from the
May/June lows ; Daily OB/OS momentum was moderately oversold.
With the DJ Eurostoxx 50 at support and Daily OB/OS momentum oversold, the
conditions for a short-term low are in place.
Also, DJIA /NYSE ITI analogs point to a low around for US equities—see below.
However, no clear buy signal—the short-term trend (days/weeks) for the DJ
Eurostoxx 50 remains negative.
See Daily OB/OS Charts, attached, page 6 and analog charts pages 2-3.
Intermediate-Term (weeks/months): negative
Intermediate breadth and momentum indicators for Europe/UK were all sharply
lower week-on-week at the close on Thursday, including DJ Stoxx 600 and FT A ll
Share Intermediate Term Indicators and Money Flow of the DJ Stoxx 600 and FT All
Share Stock.
Intermediate indicators for the DJ Stoxx 600 and FT All Share are now mostly
moderately oversold.
The DJ Stoxx 600 and FTSE were also both sharply lower week-on-week at the close
on Thursday ; the DJ Stoxx 600 is now testing trend support from the fall 2022 low
and the FTSE is testing March 2020 support. See Weekly Charts, pages 7 and 8,
attached.
Key Europe equity indices are at support and indicators are in oversold territory, so
the conditions for an intermediate low are in place. Also, DJIA /NYSE ITI analogs
(“second peaks” and average of best analogs) both point to a low around now for the
key US equity market. See analog charts, pages 2 and 3.
However, no clear intermediate buy signal for now.
The intermediate outlook (weeks/months) for Europe equity indices remains
negative, but on the alert for a buy signal.