European Indices Turn Lower To Close The Week
By
EUROPE/AMERICAS
DAX: The DAX initially consolidated sideways last week, but eventually turned lower into Friday’s close to confirm that wave 3 of v had completed and price is now filling out wave 4 of v. Under that assumption, 15370 is ideal fib support to hold as wave 4 in order to turn back up for one more high as wave 5 of v with 16065 as the ideal target above. Otherwise, below 15270 would be a warning sign of a more significant top potentially already in place.
FTSE: The FTSE edged initially higher last week, but then proceeded to fall sharply lower into Friday’s close. Therefore, it looks like the alt count discussed last week is what is playing out, that last week’s high completed wave a of (v) and price is now filling out wave b. If so, then ideal support to hold resides between here and 6965. Below there would be a warning that all of wave (v) may have already topped.
STOXX: The STOXX started off last week initially higher as well, but turned down sharply into Friday’s close. Like the DAX, this confirms that last week’s high should have completed wave 3 of v and price is now filling out wave 4. Under that assumption, 4070 – 4025 is ideal support to hold as wave 4 before turning back up for one more final high in wave 5 of v. Below 4025 would be a warning sign of a more significant top potentially already in place.
IBOV: The Bovespa curled down more last week, increasing the likelihood that wave iii of 5 completed at the current high on the month and price is now filling out wave iv. Under that assumption, there remains room for more near-term downside before wave iv completes with 123225 as a potential target to reach before a local bottom is struck.
IPC: The IPC curled down further last week as well, increasing odds that the current high on the month completed wave C of (A). A break below 48800 remains required next to completely confirm that, but as long as price is below last week’s high then pressure should remain to the downside.
