European benchmark correction sees threat of a bear swing
· We stated in our last report to clients that “we see upside now likely capped by 3247 into Thursday, ahead of 3263. The bias is then for a roll back lower to the range, for 3200, maybe 3180/79 into Friday”.
· The plunge through supports to pierce the up trend line from August leaves risk for a deeper late September correction.
· We see bias for a test to the lower end of the range defined by chart resistance 3263 and 3165 retrace support.
· The skewed bias is for a break below 3165 for a bear shift (see below).
WHAT CHANGES THIS?
· Downside: Below 3165 sees risk lower for 3152/3142 and better support, 3122.
· Upside: Back through 3263 aims back above the recent 3293 peak to aim for the 3307 high and maybe weekly continuation chart high 3327.
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4 Hour Euro STOXX 50 December Future Chart