EUSTOXX50 - Read the classic indicators
Daily: As Price is very volatile, the longer term equilibrium (Senkou B line - Kumo bottom) is not really changing, stays ard 3050. In terms of Ichimoku signals it is very hard to read this volatile daily chart. There is too much noise as Tenkan is almost corssing bullish above Kijun, future Kumo components (Senkou lines) point up) but Chikou is about to cross bearish below Price candles. Still I can not think about European equities as bullish at all for the following reasons:
- DMI is still bearish
- Slow Stoch is about to give a firm bearish signal after Price couldn't break 3220 horizontal key resistance
- Massive bearish MACD divergence and MACD is not far away from giving a bearish signal too
- Increased/increasing volatility is not a sign of a bullis market. This kind of volatility spike happens usually at major top buildings.
- Fundamentals: Greece-Syriza in focus -> EUR collapse fears -> ECB more unlikely to apply full sovereign QE program -> expected monetary stimulus which kept equity prices inflating may be off the table
Real trouble and bear mkt would start below 2900.
4 Hrs: Weak bearish Tenkan/Kijun cross and weak bearish Chikou cross to happen? Price is close to short term equilibrium at 3100. Bearish acceleration could happen below the Kumo. Watch DMI too!
- DMI is still bearish
- Slow Stoch is about to give a firm bearish signal after Price couldn't break 3220 horizontal key resistance
- Massive bearish MACD divergence and MACD is not far away from giving a bearish signal too
- Increased/increasing volatility is not a sign of a bullis market. This kind of volatility spike happens usually at major top buildings.
- Fundamentals: Greece-Syriza in focus -> EUR collapse fears -> ECB more unlikely to apply full sovereign QE program -> expected monetary stimulus which kept equity prices inflating may be off the table
Real trouble and bear mkt would start below 2900.
4 Hrs: Weak bearish Tenkan/Kijun cross and weak bearish Chikou cross to happen? Price is close to short term equilibrium at 3100. Bearish acceleration could happen below the Kumo. Watch DMI too!
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