The DJ Eurostoxx 50 was sharply higher last week as Daily OB/OS momentum turned positive.

Short-Term (days/weeks): higher
The DJ Eurostoxx 50 was sharply higher last week as Daily OB/OS momentum turned positive.
At the close on Friday, the DJ Eurostoxx 50 was testing resistance at the April/May 2023 highs; Daily OB/OS momentum was at a moderately overbought new short-term high.
The short-term trend (days/weeks) for the DJ Eurostoxx 50 remains positive.
See Daily OB/OS Charts, attached, page 6.
Intermediate-Term (weeks/months): still positive
Intermediate breadth and momentum indicators for Europe/UK were higher or unchanged week-on-week at the close on Thursday, including DJ Stoxx 600 and FT All Share Intermediate Term Indicators and Money Flow of the Average FT All Share and DJ Stoxx 600 All Share Stock.
The DJ Stoxx 600 and FTSE both improved week-on-week at the close on Thursday; both indices are testing intermediate trend resistance. See Weekly Charts, pages 7 and 8, attached.
Intermediate Europe indicators of breadth and momentum are still oversold or neutral, leaving room for further upside now. Also, the intermediate outlook for the key US equity market is still positive which looks supportive for Europe equities.
Finally, the DJIA/NYSE ITI analog model still looks relevant and points to further strength to late July for the DJIA/S&P 500 before the next pullback: this should be supportive for Europe equities (see analog chart, page 2).
Key Takeaway: the intermediate outlook (weeks/months) for Europe equity indices is still positive.