EUROPE LOWER HIGHS AND LOWER LOWS CONTINUES

Thomas Thornton, Hedge Fund Telemetry info@hedgefundtelemetry.com

12/5/2018

Many European equity markets are hitting two year lows today while the attention is on the US and Chinese tariff war and the ongoing OPEC meeting in Vienna.  I wanted to put out a short note highlighting the major indexes that could fall even further with some secondary downside DeMark Countdowns in progress.  Sentiment has remained weak with very short lived failed bounces.  The pattern of lower highs and lower lows continues.   Following this note will be the usual Hedge Fund Telemetry Daily Note.  

EUROPEAN INDEXES

Euro Stoxx 50 bullish sentiment is at 17% and will be lower with tonight’s reading (out on our website at 5:30pm EST each day)  Sentiment has also made a series of lower highs and lower lows in the past year.

Euro Stoxx 50 breaking to new multi year low and I calculated 24% of the index hit a 52 week low today.   I expect to see a capitulation figure of 50% or higher with new 52 week lows soon.

Euro Stoxx 50 making a new multi year low and has a new DeMark Sequential Countdown on day 2 of 13

UK FTSE 100 Index bullish sentiment is at 40% which will no doubt drop hard with tonights reading

UK FTSE 100 Index is the best hope for a bottom as there is both DeMark red Sequential and pink Combo Countdown 13’s today.  They have worked well at tops and bottoms in the past so we will need to see a price reaction up within the next 12 days or else trend will continue lower.  

 German DAX Index breaking to multi year lows today with downside wave  now coming into play at 10,691.  When I showed this when the DAX was above 13,000 people didn’t really notice.  Now they are for sure! 

France CAC 40 Index with a new multi year low and new secondary downside red Sequential Countdown on day 2 of 13.  There is a little hope perhaps that the pink Combo will see a price reaction in the coming days.  

Italy FTSE MIB Index with new downside DeMark Sequential Countdown only on day 3 of 13

Spain IBEX Index with a new downside DeMark Sequential Countdown only on day 3 of 13.  

OMX Index Stockholm showing multi year lows hit today

Swiss Market Index very sharp drop in past 3 days with a new downside DeMark Sequential Countdown

Key European Sectors 

European Bank sector making a new multi year low today

European Technology sector with new downside DeMark Sequential Countdown

European Auto sector with new low

European Consumer Discretionary with new Countdown

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