CAC - The trouble in Europe

I have noted that the problems this time are coming from Europe. European equities are the weakest this year. This week the CAC closed below the 20/40 week averages and in doing so completed an A-B-C rise which visually makes for a second right shoulder of a large H&S pattern. With weekly momentum back in sell mode there is now an active risk that the neckline will be put tot test again and this time it might break.

On the larger degree the monthly momentum remains in sell mode and below zero, and price below the 20 month average. The quarterly chart below shows the quarterly momentum in sell mode too. And testing the averages. This is generally the picture for many European markets and the DJ Euro Stoxx.