| Index | Strat | Risk | Target |
| FTSE | Flat | ||
| DAX | Flat | ||
| CAC 40 | Flat |
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FTSE 100
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, probably towards the former 4th wave / Fibonacci resistance in the 4676 - 5232 zone. The index should stay above 3876 on its way to mentioned resistance.
The FTSE broke higher out a rising wedge formation and taken out resistance at the 76.4% Fibonacci retracement level near the psychologically significant 4400.00 level. Prices are now on pace to challenge the previous swing high 4675.68.
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DAX 30
Long-term Technical Outlook
A 5 wave decline is also complete in the DAX. Fibonacci resistance is the 5409-5959 zone. The DAX should remain above 4391 on its way to the mentioned levels.
Short-Term Technical Outlook
German shares have oscillated sideways since testing resistance at the top of a rising channel. Initial support remains at the 76.4% Fibonacci retracement level. The psychologically significant 50000 handle adds to the topside hurdle.
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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. The index should remain above 2899 on its way to 3691.
Short-Term Technical Outlook
Recent days have seen the French benchmark index continue to inch higher along the top boundary of a rising channel. Initial support is seen at 313487 near February’s swing top.
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IBEX 35 _
Long-term Technical Outlook
The rally from the low (6703) is viewed as corrective. The IBEX 35 likely remains above 8416 on its way to Fibonacci resistance, which is the 10369-11493 zone.
Short-Term Technical Outlook
Spain’s benchmark index is working its way higher inside a rising channel toward the psychologically significant 95000 handle. Beyond that, resistance is seen at January’s swing top (98000) and the channel top (now at 98204).
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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 is complete at 12332. I wrote last week that “a wave 4 recovery could be large as initial Fibonacci resistance is not until 19543.” The index is closing in on Fibonacci resistance so beware of a top forming in the next few weeks.
Short-Term Technical Outlook
The MIB Index is continuing to work through resistance in the 20703-21387 congestion region. Support lines up nearby at a rising trend line (now at 20242).
