As tweeted earlier, the Euro Stoxx 50 chart is looking very weak. While near-term technicals dip into oversold territory, the projection is for price action to head lower.
Today's session saw a close underneath the post-Brexit uptrend, and we are likely to see a move to 2,900 to 2,915 -- or the 61 percent retracement from mid-December.
The momentum of the trend via ADX-DMI is showing strength and overwhelming bearish price action. Due to the oversold technicals, with the z-score at -1.87, a relief bounce is expected. (the weekly z-score is just -.18).
However, expect Europe's to challege the 61 percent Fib. A close below this level would cause trouble, and the index could see another 50-100 point decline to challenge the larger downtrend support.
Additionally, the 20-day EMA is looking to cause a bearish crossover with the 200-day EMA.
Also, !
If you want to learn more follow @Macro_View on TWTR -0.17% and go to macroview.co to get on our waiting list to subscribe!