Eurostoxx 50

Round-Up

Published 26th January 2018 & validated 17th May 2018

Our big picture assesses the Eurostoxx 50 index inside a secular bull market. Nevertheless, we expect a significant correction nearby. It will correct the +40% rally, which started in February 2016. The question is not if it happens but when it happens.

Market Pulse

Updated 17th May 2018

The Eurostoxx 50 is not done to the upside. We continue to expect higher levels than we trade today. Nevertheless, a correction will most likely kick in soon. It may be either of minute or subminuette degree. Strength indicators have been diverging. This negative momentum trend came to an end with today’s higher high within the blue trend since March 2018.

Short-Term Eurostoxx Elliott Wave Analysis

Updated 7th May 2018

The Eurostoxx Elliott wave structure counts best as an impulse to the upside from the March 26th, 2018 bottom. The index surpassed its 17y trend channel resistance to the upside. It acts now as support of a potential second wave or b-wave. Momentum kept on rising along with prices during the current swing up.

The most probable Eurostoxx 50 Elliott wave pattern is either a final minute wave v(circle) to the upside or a leading diagonal from the November 2017 top. The former is depicted in black and the latter in red on our very first chart below. A cross-market look around Europe skews odds towards the black count leading to a higher high than we saw in November.

Therefore, we continue to forecast: Either higher highs or higher levels for unwinding long positions are ahead for the Eurostoxx 50. 

Medium Term Eurostoxx Elliott Wave Analysis

Published 5th February 2018

The Eurostoxx 50 is hugging a 17y downward trendline. This picture is similar to other European indices such as CAC40 and IBEX35. A confirmed breakout situation of all three indices would be a strong bullish signal.

Moreover, a 17y lasting trendline seems so significant that the subsequent minor wave 2 should bring price levels again to this trendline before a breakout confirmation begins. The subsequent breakout should be very strong and quickly bring the Eurostoxx 50 closer to its all-time high.

There is a difference to the cycle wave IV in the Eurostoxx 50 to other European indices such as Dax and CAC40 if our analysis is correct. The medium-term wave structure looks in the Eurostoxx 50 like a zig-zag in cycle wave IV as opposed to contracting triangles in the Dax and CAC 40. This would mean that the European index is a bit ahead in terms of wave structure.

Technical Analysis