World Markets Update: European Indices Higher

The STOXX closed decently higher today, increasing odds of a bottom in place as wave b and price turning up in the start to a c-wave. While I can squeeze 5 up in place already off last week's low, it would look even more convincing with another micro 4th and 5th. However, technically the c-wave can take shape as an ending diagonal and therefore 5 up is not required.

The DAX also closed decently higher today, coming closer to a retest of the prior high on the month which if price manages to exceed, helps confirm wave 3 of (C) underway. Like the STOXX, I can squeeze a potential 5 up from last week's low in place, but it would look much more convincing with another micro (iv)-(v) with 13925 - 13735 as current retrace support for wave (iv).

The FTSE also continued higher today, still stretching further in wave (i) of c. Price continues to act impulsively off the May low which favors wave c of 5 starting, and can even still reach a little higher in the wave (i) of c if needed. Otherwise, looking for a wave (ii) consolidation next to test standard .382 - .618 retrace support which can be used to attempt a long with a stop below the May low.

$UKX-FTSE - Micro - May-17 2057 PM (1 hour)
$UKX-FTSE - Micro - May-17 2057 PM (1 hour)
Garrett Patten is a senior analyst at ElliottWaveTrader covering both U.S. and international equity indices as well as stocks.