- Bearish market sentiment insufficient to push the STOXX Europe 50 Index into testing pivotal support level at 3,773.43
- Lower Bollinger Band® at around 3,748.5
The STOXX Europe 50 Index's bearish run has lasted 6 days so far (-22.08 points). Yesterday's session continued down the same path: the STOXX Europe 50 Index dipped as low as 3,810 before recovering some lost ground. However, the rebound failed to push the stock to where it started the session (3,846) with the STOXX Europe 50 Index closing the day at 3,810.75.
The past 3 months have been positive for the STOXX Europe 50 Index as it added 17.41% compared to its 3-month low of 3,279.
Despite being in the red so far in the current trading session, EuroSTOXX peaked above its 50 day Simple Moving Average around 3,808 — typically an early indicator of a new bullish trend beginning to emerge. A "Bullish Engulfing" pattern — a scenario when a larger green candle engulfs a smaller red candle, at the bottom of a prevailing downtrend. Typically this is a signal of higher prices in the near term. Bollinger Bands® shows an indication of recovery: the lower band is at 3,748.5, a low enough level to, generally, suggest that the STOXX Europe 50 Index is trading below its fair value. The STOXX Europe 50 Index could begin to recover as it approaches significant support, now 37.32 points away from 3,773.43. Dipping below could be an indication that further losses are ahead.
Technical analysis shows that the STOXX Europe 50 Index (currently on a downtrend) might reverse course and start going up in the short term.
Fundamental indicators – Spain HICP (YoY) (Dec) came out at 5.6, while a consensus of analysts was expecting six.
In the meantime, negative performances are also seen in other markets, KOSPI Composite Index lost 1.93% yesterday and closed at 2,280.45.
Other assets are showing positive performances as notably, Nasdaq rose 2.59% yesterday and closed at 10,200. S&P 500 jumps 1.75% yesterday and closed at 3,783.22.
Upcoming fundamentals: Euro Zone CFTC EUR speculative net positions is scheduled for today at 20:30 UTC.