Short-Term (days/weeks): use modest weakness for the DJ Eurostoxx 50 as a buying opportunity

Short-Term (days/weeks): use any modest weakness for the DJ
Eurostoxx 50 as a buying opportunity
The DJ Eurostoxx 50 was unexpectedly sharply higher last week, extending the
uptrend from fall 2022 trend support as Daily OB/OS momentum turned positive.
At the close on Friday, the DJ Eurostoxx 50 was again testing resistance from April/
May/June highs ; Daily OB/OS momentum was back at the highest level of
moderately overbought seen since May.
The 5% 4409-4218 trading range for the DJ Eurostoxx 50 is intact. A return to 4218
support (3% below Friday’s close) is possible and should be used as a buying
opportunity.
See Daily OB/OS Charts, attached, page 6.
Intermediate-Term (weeks/months): still positive
Intermediate breadth and momentum indicators for Europe/UK all higher week-onweek
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.
The DJ Stoxx 600 and FTSE were also both higher week-on-week at the close on
Thursday, both turning up at trend support from the fall 2022 lows. The DJ Stoxx
600 is now testing resistance at the 2023 highs and the FTSE is testing trend
resistance from the March 2023 high.
See Weekly Charts, pages 7 and 8, attached.
Higher Europe intermediate indicators and equity indices suggests a still-positive
intermediate trend (weeks/months) for Europe equities.
The updated DJIA /NYSE ITI analog model (all analogs) still points to a positive
intermediate trend (weeks/months) for the key US equity market: this is supportive
for European equities. See analog chart, page 2.
Key Takeaway: the intermediate outlook (weeks/months) for Europe equity
indices is still positive.