European benchmark poised for a more negative signal
· The Thursday plunge back from ahead of 3263 from 3247/49 resistance, to pierce the up trend line from August leaves risk for a deeper correction through late September.
· A minor bounce Friday was capped buy modest resistance at 3227, to leave risk back lower early this week.
· 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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Daily Euro STOXX 50 Future Adjusted Continuation Chart
4 Hour Euro STOXX 50 December Future Chart