How do you know when "something's up" in the markets?
"In wave analysis, such behavior is a telltale sign that stocks have transitioned from a correction to an impulse."
Perhaps you already know that impulse waves move in the direction of the larger trend, while a corrective move against that trend. So when you see an impulse wave on a chart, you know the trend.
So what's the trend in European stocks right now?
The September European Financial Forecast gives you the answer at a glance, via the 9 comparative charts of these European stock indexes -- FTSE, DAX, EuroStoxx, OBX, AEX, SMI, OMX, BEL 20 and ATX.
Also in the September issue:
FTSE: Here's a "fun fact": At the August 9 low, only 8% of FTSE futures traders were bullish, and the VFTSE volatility ("fear") index spiked to its highest level since 2009. Both of these readings exceeded those you saw during the 2010 “flash crash.” What does this market behavior imply for the trend? The September European Financial Forecast explains.
DAX & Eurostoxx: Near-term, the Elliott wave patterns in German stocks best illustrate the market’s current juncture. Volume measurements and seasonal indicators for the DAX -- as well the momentum readings in the Eurostoxx -- also suggest one type of trend in the weeks to come. Get the details inside the September issue.
Market Psychology: "Elliotticians...can actually gauge a new downtrend’s maturity by listening to how noisy the 'buy the dip' chorus becomes," notes editor Brian Whitmer. He the shows you how "loud" the chorus of "buy-the-dippers" gets during 3 phases of any stock market decline. That's important information if you want to know whether today's "buy-the-dip" crowd is right.
Market Spotlight -- Switzerland: As the SMI plummeted in August, the Swiss franc only rallied higher -- so strongly in fact, that the Swiss National Bank suggested they may temporarily peg the franc, something the Bank last did in the 1970s. The September European Financial Forecast gives you Elliott- wave-derived price targets for both the CHF and SMI.
Inflation Fears: When the market is afraid ofrunaway inflation, investors dump bonds and drive yields higher. But, notes Brian Whitmer, "That’s not happening. Bond yields aren’t just falling: 10-year Swiss, German and British yields collectively dropped to record lows last month." Learn what that means for the European inflation-deflation debate.
Cultural Trends -- The Devil Goes Public: Italy’s fashion powerhouse Prada is now a public company. See our full analysis of the flotation, plus charts of Burberry, BMW and Sotheby's shares to learn what's likely next for Europe's luxury market.
Tap into these insights right now via a risk-free, instant-access subscription to The European Financial Forecast Service >> (You also get instant access to the still-valuable August 2011 European Financial Forecast.)