The Euro Stoxx 50 Index jumped off of technical support of 2,814 but still remains in a clear downtrend of 2015's bubble-high of 3,837. Since last year's top, the index has made several lower-lows, and the current trend from the market bottom has etched out two clear lower-highs.
Given the state of the brief risk aversion seen last week as the "leave" vote took a pronounced lead, global were "due" for a rebound. As alerted earlier last week, the near-term momentum was set for a shift:
If you look across European equities, the prospects are not turning out like many thought. In regards to the Euro Stoxx 50 , price action does not get interesting until a close above the near-term, broken uptrend AND prevailing downtrend is confirmed. The 200-day will be a key . The index has not been able to trade above this dynamic resistance since last December.
Wait for price to trade into resistance near 3,000/025. MacroView does not expect Britain to leave the European Union, but there are far too many risks to get excited about.
Check out Bloomberg's Brexit tracker, currently showing a small Brexit lead.
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