The CAC 40 (CFD ticker: FRA40) is the benchmark index for the stock market in France. This index represents the top 40 stocks in the Euronext Paris stock market previously called "Bourse de Paris"; the total market capitalization of this index in 2015 was €1.03 Trillion. The Euronext trading hours begin at 9 a.m. and run to 5:35 p.m. CET for the fixing, Monday-Friday. This index was created back in December of 1987 and it started with a base value of 1,000. This index is of much help to investors that want to gain a perspective on how France"s stock market is performing and the economic implications that come along with the performance of this index. France represents one fifth of the total economy of Europe, therefore, it is of great importance to investors to follow the behavior of the French index in order to gain insight of where the European economy is heading. CAC 40 represents stocks from a broad range of sectors, with a total representation of 35 sectors. The sectors in this index range from the tires sector, automobiles, chemicals, cyber security, steel, aerospace, and insurance just to name a few. The CAC 40 is the French equivalent of the DAX 30. The sectors that have the most effect in the index are the pharmaceutical sector with a 10% of the total weight of the index, Banking 10%, and Oil equipment and services with a 9%.
1-2-1-2 give a clue of how much time the rest of the decline may take. The full w3 should unfold before end Aug, the rest should take another month or so.
Looks like all corrections in all indices are over, and we are going to see a market crash in May-June.
The multi-year bear market started end of January this year, but nobody notices. Watch out for a big sell-off over the next couple of months.
Note that EUR and other currencies should fall together with indices and bonds. Crude should follow too.
Monthly : Weakness of the new highs (exhaustion), testing a trendline.
Weekly and daily : New lows, the market is in a PB wave.
Hourly : search for bullish weakness
European bank stocks cheered the prospect of higher Fed interest rates which should help their profits thereby pulling general indices higher.
Frances CAC-40 index jumped to a 12-week high of 5294, bias higher.
Better-than-expected economic data which included flash Euro-zone PMI prints for September also lent support.
Technical studies support further gains. We ...
The CAC40 could slide that way (see green circles and 50% Fibonacci levels for mean reversion purposes). You can also check out my previous posts for confirmation
CAC40 is still in short term down trend. Watch trend line for 886 for short. In case price break up and violate the previous high then it can resume the bullish trend.
