Good time of the day, Slopers.
It is perhaps a testament to importance of the US to global markets – absolute majority of financial blogs out there focus on major US indices, such as SP500, Nasdaq, DJI and Russell.
As I am based in Europe, I mostly trade EU indices, which I also often find clearer from a charting perspective. Perhaps that is because many fewer people trade those. Perhaps also my posts on EU indices might be useful to you from a cross-asset perspective.
I bring two charts today, both of which look a lot more bearish than US majors, in my opinion.
This is an hourly chart of EuroSTOXX50 – an index composed of 50 largest stocks in the Euro area (which in terms of GDP is only 5% smaller than the USA). The EuroSTOXX fell through their early October low, and so far retraced about 62% of their 9.3% decline from the high (SP fell a much more modest 6.6%, high to low).
This is an hourly chart of the German DAX (fourth largest economy on Earth). This is one of the weakest Euro area indices, which so far retraced less than 62% of its 9.75% decline.
It is quite unlikely that US markets go much higher without us Europeans. As European markets are much weaker, and do not look like they could challenge the highs any time soon, I'd say chances are high that the second leg of the decline begun on 20 October is about to begin.
Thank you and have a great week. – - Aidyn Kussainov