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

Short-Term (days/weeks): positive for the DJ Eurostoxx 50
The DJ Eurostoxx fell last week as Daily OB/OS momentum turned down at
moderately overbought.
At the close on Friday, DJ Eurostoxx 50 was testing trend support from the March
low ; Daily OB/OS momentum had fully neutralized from moderately overbought.
There is a minor negative divergence in Daily OB/OS, but this signal is most useful
when occurring in several equity indices; this is not the case currently.
Would give the uptrend the benefit of the doubt.
See Daily OB/OS Charts, attached, page 6.
Intermediate-Term (weeks/months): still positive
Intermediate breadth and momentum indicators for Europe/UK were mostly
unchanged week-on-week at the close on Thursday, including the FT All Share
Intermediate Term Indicator and Money Flow of the Average FT All Share and DJ
Stoxx 600 Stock. The DJ Stoxx 600 Intermediate Term Indicator fell.
The DJ Stoxx 600 and FTSE were both lower week-on-week at the close on
Thursday ; DJ Stoxx 600 is turning down around intermediate resistance.
See Weekly Charts, pages 7 and 8, attached.
Mostly unchanged intermediate indicators of breadth and momentum accompanied
by weakness in the DJ Stoxx 600 suggests a still-positive intermediate trend for the
DJ Stoxx 600. There is a negative divergence in the DJ Stoxx 600 Intermediate Term
Indicator (see Weekly Charts, attached, page 8); this is a red flag, but in the absence
of corresponding sell signals in the key US equity market, would prefer to give the
uptrend the benefit of the doubt for now.
Also, all three updated US analog models (NYSE ITI and the DJIA/Pre Election Year
cycle) still point to a positive intermediate trend for the key US equity market (see
analog charts, pages 2-4) : this is supportive for Europe equity indices.
Key Takeaway: the intermediate outlook (weeks/months) for Europe equity
indices is still positive.