East to West: Europe faces a stern test

The Shanghai Composite Index broke primary support at 2650 but rising troughs on the Trend Index indicate buying pressure. Expect retracement to test the new resistance level at 2700.

Shanghai Composite Index

India’s Nifty is testing primary support at 10,000. Descending peaks on the Trend Index warn of selling pressure. Breach of support at 10,000 would indicate weakness but we need a lower peak to confirm a down-trend.

Nifty Index

European stocks are under the pump, with threats from the Asian contagion, Brexit, Italy and recent US volatility. Breach of support at 365 warns of a primary down-trend.

DJ Euro Stoxx 600 Index

The DAX also breached primary support (11,800). Retracement respected the new resistance level and descending Trend Index peaks warn of growing selling pressure.

DAX Index

France’s CAC-40 index is testing primary support at 5000.

CAC-40 Index

The Footsie is testing primary support at 7000, with descending Trend Index peaks again warning of selling pressure. Breach would signal a primary down-trend.

FTSE Index

A down-turn in Europe would add to uncertainty in US markets.