European Equities Testing Key Trend Lines

From Dana Lyons: Several key equity trendline tests are underway across the European region.

The past few editions of our #TrendlineWednesday feature on Twitter have not exactly been the most intriguing we’ve ever posted. In fact, it has been a challenge at times recently to even find enough candidates to publish the feature. This week, however, is a different story. Compelling trendline developments abound in the financial markets – with no area sporting more critical trendline tests than the European equity markets. Here is a sample of some of those key tests underway.

The STOXX Europe 600 Index is testing its post-2009 Up trendline…again.


The German DAX is also testing its post-2009 Up trendline…again.


And the French CAC-40 is testing its post-Brexit Up trendline.


Each of these developments is worthy of its own dedicated blog post. The fact that we are observing coordinated trendline tests across those key markets tells us that this is potentially a key juncture. So is this another buying opportunity – or have these markets worn out the support of their respective trendlines?

At The Lyons Share, we have been very consistent in our analysis and views toward Europe. In a Premium Post, we reiterate those views and provide an update, in light of the present developments. We also share which markets around the region that we favor – and which ones we’d avoid.

If you’re interested in the “all-access” version of our charts and research, please check out our new site, The Lyons Share. You can follow our investment process and posture every day — including insights into what we’re looking to buy and sell and when. Thanks for reading!

Disclaimer: JLFMI’s actual investment decisions are based on our proprietary models. The conclusions based on the study in this letter may or may not be consistent with JLFMI’s actual investment posture at any given time. Additionally, the commentary provided here is for informational purposes only and should not be taken as a recommendation to invest in any specific securities or according to any specific methodologies. Proper due diligence should be performed before investing in any investment vehicle. There is a risk of loss involved in all investments.

The SPDR EURO STOXX 50 ETF (FEZ) was unchanged in premarket trading Thursday. Year-to-date, FEZ has declined -7.66%, versus a 8.74% rise in the benchmark S&P 500 index during the same period.

FEZ currently has an ETF Daily News SMART Grade of B (Buy), and is ranked #35 of 90 ETFs in the European Equities ETFs category.

This article is brought to you courtesy of Dana Lyons, JLFMI and My401kPro.