European stock rebounded with U.S stock from the begin of the year on the expectation that ECB will continue to support the economy and both sides of the trade war may cool down. Though ECB does claim to support the economy, U.S and China continued to escalate the trade war by raising tariffs against each other. Technically, the European stock index failed to...
Last Oct I published a series of charts named “The preponderance of evidence”, I think it is time for a new series. I think the charts itself should be self explanatory. Feel free to drop me a line on what you think.
I don't know why, but the longer I look at the EUROSTOXX 50, the more bullish I get. There are two distinct ways it will work out.
Door 1: Rally direct. That would mean no more significant lows. Follow the green line, maybe a little lower low, but not much. Here the sky is the limit and as a stop 2600 has to hold.
Door 2: Umleitung. We see a significant low...
