European indices have been moving sideways in a corrective pattern for the last two weeks. DAX may be forming another triangle to be followed by another push higher towards 7550. Support levels at 7150-100 still hold and the index trades still inside the longer term upward trend channel.
Eurostoxx has a similar pattern with DAX. Support levels have been held, while the index has made a corrective pull back. Longer term momentum remains upwards with target just above 2600 where the middle pitchfork resistance will put bulls to the test.
IBEX has been in the centre of attention due to the financial aid Spain may or may not seek from ECB. Prices have moved sideways to form a triangle that we are expect to be broken upwards with targets near 8150-8200level. The index is trading around the middle pitchfork and it will have a difficult task ahead because that area is not only a previous top, but also a longer term downward sloping trendline connecting previous tops.
Bulls should expect a move towards new highs or at least a double top in the next two weeks. However they should be on high alert if support levels are broken, because this upward move could end anytime now.
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