• 171 days Will The ECB Continue To Hike Rates?
  • 171 days Forbes: Aramco Remains Largest Company In The Middle East
  • 173 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 573 days Could Crypto Overtake Traditional Investment?
  • 577 days Americans Still Quitting Jobs At Record Pace
  • 579 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 582 days Is The Dollar Too Strong?
  • 583 days Big Tech Disappoints Investors on Earnings Calls
  • 584 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 585 days China Is Quietly Trying To Distance Itself From Russia
  • 586 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 589 days Crypto Investors Won Big In 2021
  • 590 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 590 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 593 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 593 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 596 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 597 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 597 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 599 days Are NFTs About To Take Over Gaming?
What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

  1. Home
  2. Markets
  3. Other

Is a Plunge Coming in Europe's Blue Chip Stock Market?

The Dow Jones Euro Stoxx 50 Index is an index of 50 blue chip stocks throughout Europe, and is Europe's equivalent of the U.S. Dow 30 Industrials Index. It is a key barometer of coming broad stock market price moves and economic activity. This weekend, the Stoxx 50 is completing a well-defined, textbook, large Rising Bearish Wedge, which warns that a strong stock market plunge is soon coming to Europe. Further, there is a second Bearish pattern, a Megaphone or Broadening Symmetrical Wedge Topping pattern, one I dub the Jaws of Death pattern, which also is nearing completion this weekend, also warning Europe's stock market is in imminent danger of a sudden and powerful decline. That is two independent patterns providing the same warning about the same major stock index, both at the same stage of development, close to completion.

It is difficult to know what specific news events will trigger this coming decline. It could be a convergence of several events, some political, some economic, some environmental. There is a major treaty negotiation close at hand between all the nations of the world and Iran, with the nation Israel very unhappy with the deal according to an article posted at the online Wall Street Journal Friday, November 8th. Could that play into a trigger event causing this coming stock market decline in Europe? That is just speculation, however the patterns we present this weekend are not speculation, they are reliable patterns, the accumulation of all knowledge by everyone about Europe's top 50 companies, an accumulation of market psychology that will lead to a powerful sell-off, possible starting sometime over the next 6 months.

Here are the charts:

Euro Stoxx 50 Index Weekly Chart

Europe's Dow 50 Stock Average, the STOX5E, completed its Grand Supercycle degree wave {III} top in 2000. Since then we have witnessed the start of Grand Supercycle Degree wave {IV} down in Europe with the worst yet to come, which is interesting since it could be a glimpse into how the Grand Supercycle decline will start in U.S. markets. It is difficult to discern what degree the waves since 2000 have been in, whether they are in the first Supercycle degree wave (A), of an (A) down, (B) up, (C) down move for {IV} down or are in the third degree of (C) down. Due to the need for proportionality of waves, I am labeling the above moves since 2000 as the three waves for Supercycle degree wave (A) down, with the third wave for (A) down, cycle degree C-down underway. That Cycle degree C-down is a five wave decline and the first of those five waves came from 2007 through 2009. The rally since is corrective wave (2)-up, which is concluding. Next will be a powerful and disastrous wave (3)-down of C-down of (A) down.

Euro Stoxx 50 Index Daily Chart

The Dow Jones Europe Stoxx 50 is completing a large Rising Bearish Wedge, with the recent rally popping above the upper boundary, which is known as a normal "throwover" which typically occurs at the very end of the pattern. This pattern is telling us that Europe's stock market is soon going to fall hard, and possibly crash, the start of wave (3) down.

Euro Stoxx 50 Index Daily Chart 2

The Dow Jones Europe Stoxx 50 has just completed a Jaws of Death Stock Market Top. A strong decline should begin soon, the start of wave (3) down.

Euro Stoxx 50 Index Daily Chart 3

The Stoxx 50 has just completed a Jaws of Death Stock Market Top. A strong decline should begin soon, the start of wave (3) down.

Here is a final thought: What starts in Europe often spreads to the United States eventually. My new book addresses this coming event and how to prepare for it, the Amazon.com Investing Category Best Seller The Coming Economic Ice Age, Five Critical Steps to Survive and Prosper


Do not be satisfied hearing what the market did; learn how to predict what the market is going to do. Join us at www.technicalindicatorindex.com as we study the language of the markets. Markets tell where they are headed. Technical Analysis is the science where we learn and apply the language of the markets. We are currently offering a FREE 30 Day Trial Subscription. Simply go to www.technicalindicatorindex.com and click on the Free Trial button at the upper right of the home page. If you would like to follow us as we analyze precious metals, mining stocks, and major stock market indices around the globe, We prepare daily and expanded weekend reports, and also offer mid-day market updates 2 to 3 times a week for our subscribers. We cover a host of indicators and patterns, and present charts for most major markets in our International and U.S. Market reports.

"Jesus said to them, "I am the bread of life; he who comes to Me
shall not hunger, and he who believes in Me shall never thirst.
For I have come down from heaven,
For this is the will of My Father, that everyone who beholds
the Son and believes in Him, may have eternal life;
and I Myself will raise him up on the last day."

John 6: 35, 38, 40


Back to homepage

Leave a comment

Leave a comment