- 21.3 points is the STOXX Europe 50 Index's largest single-day drop in 3 weeks.
- Price action breaks below known Fib level (3,646.51)
During a 15 day uptrend, the STOXX Europe 50 Index gained a total of 319.49 points, or 8.95%. Now turning against its recent performance, trading lower, the STOXX Europe 50 Index is currently down 21.28 points as it ranges between 3,623 and 3,675.66 so far today.
Having set a significant high of 4,392 a month ago, the STOXX Europe 50 Index is trading 11.34% lower.
Trend-focused traders would be interested to note that the Commodity Channel Index (CCI) indicator is above +100, meaning the market price is unusually high compared to the rolling average. Bearish sentiment was sufficient to push prices below the known Fib level of 3,646.51 serving as intraday support. Asset volatility analysis shows that the STOXX Europe 50 Index's upper Bollinger Band® is at 3,701 which indicates a further downward move may follow. The STOXX Europe 50 Index chart analysis: the STOXX Europe 50 Index could begin to recover as it approaches significant support, now 3.39 points away from 3,626.33. Dipping below could be an indication that further losses are ahead.
Overall, while the STOXX Europe 50 Index has been on an uptrend, technical indicators suggest that it has no obvious direction for the immediate future.
Fundamental indicators – data for Germany Unemployment Change published today at 08:55 UTC came out at 8,000, beating projections of 15,000 and showing improvement over the preceding figure of 13,000.
In the meantime, negative performances are also seen in other markets, after ending yesterday's session at 10,900, Nasdaq lost 128.64 points and is trading around 10,771. S&P 500 retreats 0.6% to trade around 3,833.
Positive performances can be seen by looking at other markets as having closed the previous session at 15,455, Hang Seng is up 2.41% today to currently trade at around 15,827.
Upcoming fundamentals: Euro Zone ECB President Lagarde speech is scheduled tomorrow at 08:05 UTC.