Category: European Markets
European Stocks: It's Been Tough
These are confusing times for European investors, but there have been several important technical developments in European stocks over the past few weeks.
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| By Vadim Pokhlebkin |
Published: Fri, 28 Mar 2008 17:15:00 ET |
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Every Monday, Wednesday and Friday our European Short Term Update brings you forecasts of the FTSE, DAX, CAC, SMI, AEX, IBEX 35, S&P/MIB and Euro Stoxx 50. The latest, March 28, Update also covers India's Nifty and SENSEX, S&P CNX NIfty, China's Shanghai Composite, iShares FTSE/Xinhua China Trust and iShares MSCI Emerging Index. See the March 28 issue of the ESTU online now. (Yours risk-free for 30 days.)
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These are confusing times for European stock investors. The U.S. mortgage crisis, which (at first) everyone said would not affect the rest of the world echoed throughout Europe with a vengeance, depressing stocks. The EU's economic fundamentals are also spotty: For example, the latest retail sales and consumer confidence numbers came on the "soft" side.
However, recently there has been a notable uptick in the British FTSE 100 and the German DAX, Europe's two leading stock indexes. In March, they both rallied above their January 2008 lows – and, more importantly, have stayed above those support levels.
There have been other important technical developments in European stocks over the past few weeks, as well. And the latest, April issue of Elliott Wave International's European Financial Forecast tells you about them in detail, explaining what each one means for the trend:
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Pattern Development: In March, the FTSE 100 has completed five Elliott waves down from October.
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Volume Spike: The DAX's volume recently sparked sharply above its 50-day moving average.
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Relative Strength Index (RSI): The March sell-off in the DAX showed a clear RSI divergence.
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Volatility Spike: The DAX Volatility Index spiked up to a sharp new peak in March.
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Schatz Reversal: The Euro Schatz yield (Germany's 2-year bond) and the DAX Index have shown an unusual correlation lately.
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Market Sentiment: The number of bearish market advisors recently increased to a historical high.
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Breadth: The All-Europe Breadth Index has fallen to historically low levels.
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Armstrong Cycle Turn: The cycle work of Martin Armstrong speaks of an important trend development in March 2008.
For most of these technical studies, the April European Financial Forecast references at least three prior occasions when the same phenomena occurred and shows you – with charts – what trend the stock market took after each one.
You will also find clear and concise forecasts for these European markets inside the April EFF:
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Germany's DAX stock index
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Britain's FTSE-100
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France's CAC40
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The Netherlands' AEX
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Switzerland's SMI
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Spain's IBEX 35
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Italy's S&P/MIB
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Dow Jones Euro Stoxx 50
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Russia's RTS
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Eastern Europe's CECE Overall Traded Index: Hungary, Poland, Czech Republic and Slovakia.
To read the April 2008 European Financial Forecast online now – risk-free for 30 days – please scroll below for details.