Before getting started, let me make this clear, stock markets in Germany, France and London remain in long-term up trends.
Below looks price patterns that Germany and France are creating since the lows in 2011:
Did a major fake out take place by both of these markets 60-days ago? Might have!
Both markets broke above 2015 highs a couple of months ago, which looked like upside breakouts were taking place at each (1). Then selling pressure took place and key reversals by both, are now in play.
Of late, weakness has continued and both markets are breaking rising support at each (2), that was created off the lows that took place at the start of 2016.
If both continue to fall in price at each (2), a domino effect could take place and create selling pressure in the states.
The iShares MSCI Germany Index Fund ETF (NYSE:EWG) was trading at $30.72 per share on Tuesday morning, down $0.39 (-1.25%). Year-to-date, EWG has gained 18.25%, versus a 10.06% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Kimble Charting Solutions.