How stocks do in Europe, can have an important impact on stocks in the states. Today we look at the patterns in London and Germany, as recent price action could “spill over” into stocks in the states.
FTSE 100 Index below-
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FTSE 100 hit resistance line (2) of late and it quickly turned south, breaking rising support this week at (3). One weeks weakness does not make a trend, could become important if it continues!
Below looks at the DAX Index (Germany)-
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Let me be clear about this, London and Germany remain in rising trends (higher lows) since the lows in 2009. A little weakness at resistance the past couple of weeks has NOT broken this trend.
The Power of the Pattern does feel it is very important what these two indices do in the next few weeks, as short-term support is attempting to give way. If weakness continues in these important markets, would be surprised if it doesn’t spill over into stocks in the states.
Bulls want to see the FTSE break above resistance line (2) in the top chart and the same for the DAX at (1).
