To continue with the theme of foreign (to US residents) markets, here is my take on the Italian MIB index. Italy is eurozone's third largest economy.
BOTTOM LINE: Corrections higher in risk and related assets are likely very close to completion. While major US indices advanced about 1.5% higher than expected, EU indices, notably EURO area indices are moving along the expected lines. Internal structures of these indices suggest that the next leg of the decline is imminent.
Below is an hourly chart of the Italian MIB index (Italy is the world's seventh largest economy – just below the UK). The MIB has been much weaker than most EURO area indices, and currently retraced just about 50% of its 11.3% decline. The internal structure of the decline and subsequent rally appears to conform very well to wave guidelines, with the correction finishing (?) with a clear impulse higher (15 minute chart below the hourly chart).
This is a very short-term, 15 minute chart of the Italian MIB.
I hope you find this useful, and have a good day. – – - Aidyn Kussainov
