Short-Term (days/weeks): possible modest weakness for the DJ Eurostoxx 50, to be used as a buying opportunity

Short-Term (days/weeks): possible modest weakness for the DJ Eurostoxx 50, to be used as a buying opportunity
The DJ Eurostoxx 50 was higher last week as Daily OB/OS momentum turned up at very modestly overbought.
At the close on Friday, DJ Eurostoxx 50 was turning down at short-term trend resistance and testing trend support from the December low ; Daily OB/OS momentum was stalling at modestly overbought.
Further modest weakness for the DJ Eurostoxx 50 is possible—in line with expectations for further modest weakness in the key US market —but should be used as a buying opportunity since the intermediate trend for Europe equities remains positive (see below).
See Daily OB/OS Charts, attached, page 6.
Intermediate-Term (weeks/months): still positive
Intermediate breadth and momentum indicators for Europe/UK were mostly higher 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 was unchanged.
The DJ Stoxx 600 and FTSE were both higher again week-on-week at the close on Thursday ; the DJ Stoxx 600 is breaching price resistance and the FTSE is below next resistance.
See Weekly Charts, pages 7 and 8, attached.
Mostly higher Europe intermediate indicators of breadth and momentum accompanied by renewed improvement in Europe equity indices suggests that the intermediate trend (weeks/months) for Europe equity indices is intact.
The intermediate trend for the key US equity market is still positive too : see US Report.
Key Takeaway: the intermediate outlook (weeks/months) for Europe equity indices remains positive.