Key points from this week’s report:
Please refer to the attached PDF for the full report.
- The Stoxx 600 was moved to an Uptrend Under Pressure on Friday. With increasing pressure in the region reflected by rising distribution among major indices, several markets have been moved to an Uptrend Under Pressure. France, Norway, and Austria are the only countries remaining in a Confirmed Uptrend.
- We recommend a near-term cautious approach given this week’s severe price break, spike in volatility, rise in distribution, failed breakouts, and narrowing leadership.
- Recent weakness in the market coincides with a strong rotation toward value/re-opening trades. We have reason to believe that this “re-opening trade” may have another leg to run. Watch list – re-opening trade ideas include: