Short-Term (days/weeks): negative for the DJ Eurostoxx 50 (was positive)

Short-Term (days/weeks): negative (was positive)
The DJ Eurostoxx 50 fell last week, breaching price support at the spring 2023 highs
as Daily OB/OS momentum turned negative.
At the close on Friday, the DJ Eurostoxx 50 was turning up at trend support from the
fall 2022 lows; Daily OB/OS momentum was turning up at modestly oversold.
However, the intermediate trend (weeks/months) has turned negative for Europe
equities (see below), suggesting further price weakness now for the DJ Eurostoxx 50.
DJIA/NY SE ITI analogs of peaks in the 70% range suggest modest price weakness to
late August, then a rally to new highs by mid-October for the key US equity market.
The DJ Eurostoxx 50 should follow.
The short-term outlook (days/weeks) for the DJ Eurostoxx 50 is now negative. See
Daily OB/OS Charts, attached, page 6.
Intermediate-Term (weeks/months): inflection point, negative
Intermediate breadth and momentum indicators for Europe/UK all fell week-on-week
at the close on Thursday, including DJ Stoxx 600 and FT All Share Intermediate
Term Indicators and Money Flow of the DJ Stoxx 600 and FT All Share Stock. The
DJ Stoxx 600 Intermediate Term Indicator was sharply lower, turning down in
overbought territory with a negative divergence.
The DJ Stoxx 600 and FTSE both fell week-on-week at the close on Thursday : both
indices fell sharply, turning down at resistance and are above trend support. See
Weekly Charts, pages 7 and 8, attached.
Declines in Europe intermediate-term indicators accompanied by accelerated
weakness in Europe equity indices following an extended rally suggests an
intermediate inflection point for Europe equity indices now. The intermediate
outlook (weeks/months) for US equities is now negative too; this looks bearish for
Europe equities.
The average of new DJIA /NYSE ITI analogs (peaks in the NYSE ITI in the 70%
range excluding 2020) suggests modest weakness for key US equity indices (further
1% decline) from now until late August, then a rally to new highs by late October:
see analog chart, page 2. Deep downside is 5% further decline to late September.
This looks like a reasonable scenario for Europe equity indices too.
Key Takeaway: the intermediate outlook (weeks/months) for Europe equity
indices is now negative (was positive).