The DJ Eurostoxx 50 improved last week, as expected, turning up at trend support from the fall 2022 low as Daily OB/OS momentum turned positive. This looks like a short-term buy signal (days/weeks).

Short-Term (days/weeks): positive
The DJ Eurostoxx 50 improved last week, as expected, turning up at trend support
from the fall 2022 low as Daily OB/OS momentum turned positive.
This looks like a short-term buy signal (days/weeks).
At the close on Friday, the DJ Eurostoxx 50 was turning down at resistance and
Daily OB/OS momentum was turning down at modestly overbought. The intermediate
trend for Europe equities (weeks/months) has turned positive, so any weakness is
likely to be modest: new DJIA/NYSE ITI analogs suggest strength to early October
for the key US equity market; this should be supportive for the DJ Eurostoxx 50.
See Daily OB/OS Charts, attached, page 6 and analog chart page.
Intermediate-Term (weeks/months): positive (was neutral)
Intermediate breadth and momentum indicators for Europe/UK were mostly higher
week-on-week at the close on Thursday, including DJ Stoxx 600 and FT A ll Share
Intermediate Term Indicators and Money Flow of the FT All Share Stock; Money
Flow of the Average DJ Stoxx 600 Stock was unchanged.
Intermediate indicators for the DJ Stoxx 600 and FT All Share are turning up or
stalling in oversold territory.
The DJ Stoxx 600 and FTSE were both sharply higher week-on-week at the close on
Thursday ; the DJ Stoxx 600 turned up at trend support from the fall 2022 low and
the FTSE turned up at trend support from the March 2020 low. See Weekly Charts,
pages 7 and 8, attached.
Intermediate indicators turning up/stalling in oversold territory accompanied by
sharply improving DJ Stoxx 600 from intermediate trend support looks like a
confirmed intermediate buy signal for Europe equities (weeks/months).
Also, the DJIA /NYSE ITI analogs of peaks in the 70% range pointed to a low
around now for the key US equity market and new analogs of troughs in the 50%
point to strength to early October; this is bullish for Europe equities. See analog
chart, page 2.
The intermediate outlook (weeks/months) for Europe equity indices is now
positive (was neutral): see strength to early October.