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European Stocks: EuroStoxx 50 Shows a Topping Picture
The recent weakness in European stocks was expected

By Vadim Pokhlebkin
Wed, 30 Jan 2013 17:15:00 ET
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The news reports from Europe on January 30 said that European stocks took a hit after the release of weaker-than-expected U.S. GDP number for the 4th quarter of 2012.

Yet Elliott wave patterns in the EuroStoxx 50, pan-European index of the continent's 50 largest stocks, are showing that the recent rally has been on its last leg for a while.
Notice in the chart below (copied from Elliott Wave International's European Intraday Stocks Specialty Service) how the fifth-wave advance barely mustered the strength to clear the top of the previous wave three.
That's a sign of an exhausted trend, at least in the short term.
The Service editor, Tom Denham, told his subscribers in a January 30 intraday update "favor the downside" in the days ahead -- regardless of what you see in the headlines.
EuroStoxx 50, DAX, CAC 40, FTSE 100 Traders:



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