🔍 European Market Signals
Short-Term High Conviction Setups
As we head deeper into May, European equities are showing a cluster of short-term high conviction negative macro signals that warrant close attention. Below is a breakdown of the most compelling setups EURO STOXX Banks (SX7E), EURO STOXX 50 (SX5E), FTSE 100 (UKX), iShares MSCI Germany ETF (EWG), iShares MSCI Eurozone ETF (EZU)
📊 Indices
💥 SX7E – European Banks: Primed for a Pullback?
The EURO STOXX Banks index has been on a run year-to-date. But the short-term picture is flashing potentially overbought conditions:
Conviction Signal: High
Bias: Tactical bearish
Targets: 183.38 / 180.16
🔄 SX5E – EURO STOXX 50: Stalling at the Top
The broad European benchmark has been consolidating just below its recent highs.
Conviction Signal: High
Bias: Tactical bearish
Targets: 5136 / 5088
🏛 FTSE 100 – A Defensive Rebound in Play
Conviction Signal: High
Bias: Tactical bearish
Targets: 8355
🧺 ETFs
iShares MSCI Germany ETF (EWG): Risk to Downside
Conviction Signal: High
Bias: Tactical Bearish
Targets: 39.67 / 37.80
iShares MSCI Eurozone ETF (EZU)
Conviction Signal: High
Bias: Tactical Bearish
Targets: 54.03 / 53.79
