The end to a sequence of higher daily lows turned Wednesday’s signals for EUROSTOXX to bearish. These were confirmed with losses of 32 Pts on the day, the worst trading day for sentiment since the middle of May. Although this is negative, pullbacks are also signalled as being temporary and a sequence of higher weekly lows remains intact.
So while today’s signals continue to point lower, the call is cautious, selling modestly on the open and then at 3295, with a stop loss at 3313, yesterday’s high. Targets are to 3266, 3240 and 3216, June’s base.