An arm of Elliott Wave International, this video of the editor of European Financial Forecast looks at EU stock indices noticing the 10-year gaps between their highs. This reminded me of the 10-year gap between the Nikkei 225’s peak in 1990 and that of FTSE 100 and a handful of others in 2000.
More importantly, these indices provide a superb example of Charles Dow’s theory that the indices must confirm each other. A level playing field provided by EU law, financial strictures and obligations, and common goals, it’s most interesting to see market reality as compared to current media hype about a European Renaissance.
Brian Whitmer also looks at sentiment indicators to see whether these confirm – or not – Elliott Wave counts and chart patterns. Investor sentiment as euphoric as it was in 2000 and 2007 is something to be concerned about. So too is the ultra-cheap level of European high yield financial Credit Default Swaps. Again, looking for a confluence of factors that confirm each other.
Watch the video by clicking this link