The process of stabilization on the European stock exchanges has been interrupted. Recent bottoms are under pressure on some stock markets. Until recently I thought the technical damage was limited. Nothing could be further from the truth, because now the alarm bells are ringing. Apparently I was too enthusiastic in one of my previous posts.
I am particularly shocked by the high reading of the E-VIX index, the European panic barometer. This has risen almost 5 percentage points in the past week to now 22.30. This is the highest point since the end of March. As a result, the VIX index appears to have broken through the highs of recent months around 21.50 points. That could signal new unrest.
This time I look at the short-term technical picture of some European stock indices. I’ll start with the European panic barometer.
European VIX climbs
All VIX-Europe upswings over the past six months have stalled around 21.50 points, delineated by the thick red horizontal line. As long as the VIX remained below this level, there was no serious unrest.
But now that those tops are under pressure, the European panic indicator is sounding the alarm. The unrest in the European financial markets is increasing significantly.
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Dutch stock exchange shows some technical weakness
The AEX index has fallen back below the former hurdle around 736.20 points (top of September 29). This indicates minor technical damage. Some room is opening up for a further decline as the first bottom breaks around 731.50, marked with the upper thick blue line.
The AEX may be captured by the two intraday bottoms around 715.32, marked with the lower thick blue line. There is a strong safety net around support 710.89 points (bottom of March 20).
The AEX index has resistance at 754.76 (top of September 4). Support is around 710.89 (March 20 bottom).
Euro Stoxx 50 forms another lower top within the downward trend
The Euro Stoxx 50 index is stuck at the October 12 peak around 4,234.49. This again produces a lower top, which confirms the downward trend. Only after a breakout above 4,234.49 does the downward trend break and 4,340.83 becomes the next upward price target. Support is around 3,767.26 (December 20, 2022 bottom).
CAC40 continues downward trend
Now that the French stock market has again fallen below a recent price bottom, the weak profile is confirmed. The CAC 40 index thus resumes the downward trend. There is support around 6,796.21 (March 20 bottom). The CAC 40 index has resistance around 7,204.96 (formed on September 29), the next hurdle is around 7,581.26 (formed on April 24). Support is at 6,796.21 (March 20 bottom).
DAX weakens
The DAX index forms a lower top below the former bottom. This old support now functions as new resistance. As long as the price remains below this, the technical picture looks negative. There is support at 13,791.52 (bottom of December 20, 2022). Resistance is around 15,575.28 (formed on October 12).
Belgian stock market breaks recent bottom
The Bel 20 index drops below the low of early October around 3,445. The lower highs of the previous months already indicated new selling pressure. The recent breakthrough generates a new weakening and further price pressure can no longer be ruled out. A price drop towards 3,269.91 (bottom of October 13, 2022) can be expected. Resistance is at 3,576.71 (top of October 12).
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2023-10-20 05:33:01
#Panic #barometer #sounds #alarm #IEX.nl
