It looks like the Eurostoxx 50 is tracing out a contracting triangle as part of its correction. The structure is nearly finished and should resolve with a spike to the downside. Overall the structure most likely forms a corrective zig zag before the most European equity index continues its journey to the upside. We are bullish after this correction completes!
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We could see a flat instead of the triangle. The c-wave of the flat would then trace out as an expanding ending diagonal that started on December 1st. All in all we think that another leg down is more probable in the SX5E.
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Still viewing triangle as most likely. Expect spike to the downside until year end. Red line is support of a 17-year down trend channel.
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It was a triangle indeed! Correction needs to play out before going long SX5E.