DJ Euro Stoxx 50

The Euro Stoxx 50 - an index of European stocks, has been going up since it broke out of the consolidation in December. The rally finally looks like complete. The recent top therefore is important in considering once again that a counter trend move up that lasted months and retraced more than 50% of the 2015-2016 bearish trend in the European markets is over. A break of 3250 on closing basis would further enhance this view in the coming days. Till we get a clear sign that the downside is limited we should consider European markets as a significant near term headwind if 3250 breaks.