European Bath Tub - II

Its time for a revisit. Some time back the FED did a twisted QE by throwing money at the ECB and a global rally started. This rally could have more legs but right now key resistance levels are being reached and short term momentum indicators are going into sell on several Euro markets so will cover these today to watch. I start with the USDEUR which shows the rising dollar and falling Euro for months. The recent correction could be a trend reversal but is at key testing supports where the upward trend may hold. Wave 2 is finding support near the 20wma and the neckline of a one year long H&S pattern at 0.75

 The DAX completed a perfect 61.8% retracement of the fall of last year which caused a negative close on the yearly charts.

 FTSE completed a 78.6% retracement where wave C of 2 is now a clear rising wedge. The light blue line represents the retracement level on all charts.

Switzerland markets also did a 78.6% retracement where the entire rising pattern is a expanding triangle.

Netherlands did a near 61.8% retracement and like UK a rising wedge is broken.

Lastly the S&P has retraced 78.6% up to a falling trendline from the 2007 highs in what would be a right shoulder if we see a top here. The weekly chart below shows a double zig-zag in the rally from the October lows.

In most of the markets above the prices have rallied into the upper Bollinger band on the weekly charts a key resistance level for all of the from where selling pressure can emerge. Once the trend is clear on these markets we can take a call as to what is happening.