| Index | Strat | Risk | Target |
| FTSE | Flat | ||
| DAX | Flat | ||
| CAC 40 | Flat |
FTSE 100
Long-term Technical Outlook
There is little change to the outlook for the FTSE 100. 5 waves down from the 2007 high are complete and A 3 wave advance is underway now. Near term, a B wave decline likely leads to a drop back to 3763.
Short-Term Technical Outlook
The FTSE rebounded from support at the 100-day moving average and broke past resistance at the intersection of a rising trend line that served as the bottom of a rising channel since March and the 76.4% Fibonacci retracement. The bulls now see the next hurdle at 433397, the previous swing high.
_____________________________________________________________________________________________________________
DAX 30
Long-term Technical Outlook
A 5 wave decline is also complete in the DAX. A B wave decline is expected near term and likely leads to a decline back to 4229 or even 3987.
Short-Term Technical Outlook
German shares rebounded from support at the 76.4% Fibonacci retracement level and are now aiming to challenge the double top at 47020 once again. A break higher will target rising channel resistance at 47976.
CAC 40 _
Long-term Technical Outlook
In examining the CAC 40 pattern from the 2007 high, it is possible to count 5 waves down with wave 5 as an ending diagonal. The diagonal is clear on this chart. 5th wave diagonals are almost always fully retraced fairly quickly. As is the case with other European indexes, expect a B wave decline, potentially back to 2719.
Short-Term Technical Outlook
French issues have rebounded from the bottom of a rising channel to overcome the 61.8% Fibonacci retracement level. From here, prices aim at resistance marked by the channel top (325737).
IBEX 35 _
Long-term Technical Outlook
The rally from the low (6703) is most likely wave A in a 3 wave correction. Near term expectations are for a B wave decline to occur now, potentially bringing price back to Fibonacci support in the 7511-8059 zone before wave C completes the advance upwards of 10500-11500.
Spain’s benchmark index found support at the 100-day moving average and the bottom of a rising channel. Continued bullish momentum aims at the 90309, the previous swing high.
______________________________________________________________________________________________________________
S&P/MIB INDEX
Long-term Technical Outlook
It appears that the Milan index needs at least one more low prior to formation of a longer standing bottom. An impulse (5 waves) appears to be unfolding from the 2007 high. Wave 3 may be complete at 12332. A wave 4 recovery could be large as initial Fibonacci resistance is not until 19543. A rally to this level probably takes at least a few months.
Short-Term Technical Outlook
The MIB Index has moved higher to re-test resistance in the 19699-19152 congestion region having bounced from support at 18144, a key pivot level that has acted both as a top and a bottom in recent months. A break higher aims at the psychologically significant 20000 mark.
