Short-Term (days/weeks): modest weakness now for DJ Eurostoxx 50, then higher

Short-Term (days/weeks): modest weakness next week, then higher
The DJ Eurostoxx 50 was slightly higher last week, turning up at trend support from
the September 2022 low as Daily OB/OS momentum turned positive.
At the end of the week, the DJ Eurostoxx 50 turned down at summer 2023 lows and
trend resistance from the August price high; Daily OB/OS momentum neutralized
from modestly overbought.
The 4223 DJ Eurostoxx 50 target was reached (38,2% retracement of the losses from
the 2023 highs to last week’s low). Modest short-term weakness next week looks
likely, in line with the outlook for the key US outlook (see DJIA/NYSE ITI chart,
page 2); this should be followed by a new rally.
See Daily OB/OS Charts, attached, page 6.
Intermediate-Term (weeks/months): negative, but likely low next
week
Intermediate breadth and momentum indicators for Europe/UK were all higher weekon-
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. DJ Stoxx 600 and FT All Share Intermediate Term Indicators were sharply
higher.
The DJ Stoxx 600 and FTSE were both sharply higher week-on-week at the close on
Thursday ; both indices are turning up around intermediate price support.
Intermediate indicators for the DJ Stoxx 600 and FT All Share intermediate are
turning up at mostly moderately overbought.
See Weekly Charts, pages 7 and 8, attached.
Higher Europe intermediate indicators of breadth and momentum in oversold
territory accompanied by sharp improvement in the DJ Stoxx 600 from around
support suggests a possible intermediate buy signal for the DJ Stoxx 600. However,
the key DJIA is still above support and the new DJIA/NYSE ITI analog (troughs in
the 20%) suggests weakness next week, then a new rally to mid-November at a
minimum for the DJIA/S&P 500. This looks like a reasonable scenario for Europe
equities too
The intermediate outlook (weeks/months) for Europe equity indices remains
negative, but likely low next week.