Technical Scoring for Germany, Netherlands, Spain, and Sweden is poor and worse than the Scores for France, Italy, Norway, Switzerland, and the UK. We expect the DAX, AEX, IBEX, and OMX will all work lower. Please see below.
Germany – DAX Weekly w/ 40-Week Mov Avg and Weekly MACD
Expecting support @ 15000 will fail. 40-Week Mov Avg is cresting and Weekly MACD is sliding into negative territory way ahead of the DAX breaking. Risk thereafter to the 13800 level (horizontal line).
Netherlands – AEX Weekly w/ 40-Week Mov Avg and Weekly MACD
Weakening technical inputs for the DAX apply here. However, with us using the horizontal line as our downside target the AEX has more downside risk than does the DAX although the targets are the same – i.e., their last breakout levels.
Spain – IBEX Weekly w/ 40-Week Mov Avg and Weekly MACD
You’ll see quickly that the IBEX never rallied in 2021 like the others. It might be thought that the IBEX doesn’t have as much downside. Maybe. However, we still want to sell it here as it is got the Dikembe Mutombo treatment at the 9000 level. First support @ 8000. But if it comes undone – and this isn’t so far-fetched given the consistent trend of lower highs and lower lows since 2015 – then a retest, at least, of 6000s is doable.
Sweden – OMX Weekly w/ 40-Week Mov Avg and Weekly MACD
In line with the DAX and AEX reviewed above. Risk to the horizontal line at the early 2021 breakout level of 1900.
