Courtesy of Doug Short.
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The strong rallies in London, Germany and France over the past few years has created steep bearish rising wedges, which two-thirds of the time result in lower prices.
No doubt the trend is up on all three of these key markets!
Is each walking on a fine line of support, at lofty levels? The A break of support here could set off a wave of selling pressure, not only in Europe. It could also spill over into the US markets.
The ETF EFA has also created a rising wedge and could be working on a break of support, which could trigger some selling pressure in Europe. Could it spill over into the states?
It might be worth watching Europe a little closer than normal right now due to these patterns!
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