European Markets are steady residing into their resistance levels. Low volume and not much fluctuations. They are actually flirting to breakout of their resistances, but no one wants to be with them. News in Europe isn’t going well, mostly flat or even to the downside. We still believe that these 2yr to 5yr resistances aren’t able to break soon.
Slightly peak-ish European Markets may have a meaning of lower upward risk trade or probably more Short-Selling for U.S. Markets.
Germany:
Short Term: 2yr downtrend resistance still at 7000-7050.
Medium/Long Term: Downtrend, with 5yr resistance at 7400 is next in place if 7000-7050 is eked out. or Possible trade the range sideways pattern in these coming years.
London:
Short/Medium/Long Term: 5 year downtrend line still intact, making 5830 the resistance point to tackle. Further contract of Economy could send this lower to 5000 to 5250.
France:
Short/Medium/Long Term: resistance at 3500 to 3600. Not much independent trend, following UK and Germany’s trend I believe.
Dow Jones is still in uptrend short term, it was able to revisit the 52 week highs, but was not able to get above it. We are expecting Dow to follow Germany’s direction, and is biased that Europe may have peaked short term, and may setup a false breakout trap. I haven’t seen a fresh 3 in a row contracting Quarters that made new highs. Looking for Dow to hold around 12800-12900 to stay uptrend.
Short Term: Uptrend at 12800-12900 support, and flat resistance at 13330.
Medium/Long Term: Uptrend
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