DJ Euro Stoxx 50

European stocks have had a rally with the rest of the world but when you look at the averages compared to where they were last year its a pretty poor picture. This was the weakest rally yet. So it was all about the US in this rebound. The US is close to its Oct highs but the DJ Euro Stoxx 50, average for European stocks is at barely a 50% retracement and momentum indicators are already in sell mode.

To put it in Elliott wave perspective we completed wave B of Y, and wave C of Y down may have started which can go to 2370. That means European stocks are about to drop 21% in the next two months or so.