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DJ Euro Stoxx 50

17 Dec 2016 ‚óŹ 10:51 AM

On the Euro Stoxx 50 index, this is the best alternate count I am going to shift to. You will maybe remember these observations from last year. That the 5th may have truncated at the July high a lower top. because the fall marked as 4 was not impulsive. The fall from there is impulsive in all the legs but waves 1 and 4 are overlapped. So it is a leading diagonal. You will remember that during Brexit I noted that the fall was impulive and it did develop 5 waves down. So that is wave 5 down at best. What we have from there is a A-B-C recovery so far where wave B is a triangle and wave C has reached 50% retracement and very close to the left shoulder resistance zone near 3290-3330. So A top here would still be wave 2 Long term in the right shoulder and a Major sell off in wave 3 down can start. Europe is still to give a clear trend reversal sign short term on indicators so we need to wait and watch for that.

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