Chart of the day: Bearish outlook for Europe’s stocks
The top 50 companies of the 12 euro-zone countries are sometimes known as super-sector leaders. Unfortunately, the index has been leading on the way down so far this year following the failure last month to surpass the high in 2017. The doji at the 3,680-point level completes a triple-top chart pattern, and the Ichimoku moving averages and the Western 50- and 200-day ones look set to turn bearish. Last week, it managed to bounce from decent cloud support, but it is now likely to be capped by the top of that same cloud. Allow for some more hesitation while keeping an eye out for a weekly close below the cloud, which ought to set off another sudden 400-point lurch lower.
Nicole Elliott is a technical analyst