Euro Stoxx 50 - Are you a believer??

If you believe in correlation among markets\risk assets, then you definitively want to keep an eye on the Euro Stoxx 50, Europe's most important stock market (along with the DAX 30). The pan-European index finds itself against 20 year falling channel resistance (RED), from which some catastrophic crashes have taken place in the past: 2000, 2007, 2015, and no less than NINE failed attempts to break above said resistance in the last 38 months alone!! If you watch carefully\zoom in on recent action, you'll se that price also finds itself just below the 50 and 200 weekly MAs... no matter how you like to trade, this are three BIG TIME resistances holding back the index. I'm of the opinion that whatever happens here for the Euro Stoxx 50, the same identical thing will happen to indexes in the US and around the world. Never underestimate Europe's ability to pull the whole world up OR down!! A breakout here, as unlikely as it may seem, would be very positive for US equity, while a rejection would almost surely spell trouble for global stocks. Watch this situation as it unfolds to have a crucial heads-up in your trading... if you know anything about what's going on in the Eurozone, then you probably know that this may very well be a historic junction!!

Full disclosure: while I own some European stocks, and many stocks in general (54% of total assets at this time), I have currently NO position on the Euro Stoxx 50.