Indices

Most European indices bounced back from their recent lows, revived by the bullish sentiment in the Asian and US markets.
Indices

Most European indices bounced back from their recent lows, revived by the bullish sentiment in the Asian and US markets.

As a matter of fact, some indices have already surpassed their February highs, such as Austria ATX Index. After finding support at the 4300 level, it pierced the 4600 resistance last Thursday. Netherlands AEX Index has also displayed strong underlying demand to penerate the 510 resistance.



For other markets, however, further bullish sentiment is required before they can overcome their short-term resistance levels. For example, although the large-cap DJ Euro Stoxx 50 index has rallied strongly from the medium-term support at 3900, it is still below its February high around 4278.

Overall, with the correction since 27 February approaching its end, investors may consider gradually entering the equity market again.

Breadth

The European DJ STOXX50 % P&F Bull Trend breadth indicator rose last week to close at 77.55%. This indicates that the majority of the stocks have recovered from the correction, and are ready for the next phase of the bull market since 2003.

The short-term % 10Week Moving Average also reached a healthy 61.22% level.