Eurostoxx 50

Round-Up

Published 26th January 2018 & validated 13th August 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.

Short-Term Eurostoxx Elliott Wave Analysis

Published 13th August 2018 

Showtime approaching for Europe! Major indices have been selling off all across Europe. The Eurostoxx 50 was no exception. Price action took the right to the support level of the green trend channel. The European blue-chip index could break below that support and extend the c-wave within a triangle (not depicted in our chart). However, that’s not required as the entire triangle may complete within the next few trading days (depicted in black). If our analysis is correct, we are a few days away before a rally starts, which extends the entire cycle a bit further to the upside.

The respective mid-term trend channels for the DAX & CAC 40 are likely to guide us whether we are correct with our analysis or not. A clear break of these trends should occur soon if the entire cycle ended already.

We are still favoring the black scenario slightly over the red. We expect to see another extension to the upside for European equities.

Medium Term Eurostoxx Elliott Wave Analysis

Published 5th July 2018 & amended 19th July (last paragraph)

The Eurostoxx 50 is struggling with a 17y downward trendline. The cycle degree triangle pattern is most likely incomplete as long as we record this situation.  The European blue-chip index probably needs another down-up-down sequence into completion.

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.

We have published a broad overview of European equity indices on SeekingAlpha. It gives our big picture of what we expect for the major European indices during the next years.

Technical Analysis