The London FTSE is closer to the USA in pattern than the rest of Europe. We see a consolidation pattern crawling along resistance levels. Our Energy models are showing it is running into resistance short-term, but we are not yet and the culmination of the trend.
When we look at the European major share market on a long-term fractal basis, we can see the broader trend much more sharply.The Swiss and London do not appear to be in a dangerous position long-term. The London market appears that it will still provide some safety within Europe. This is most likely due to the fact that it is not denominated in euros. The same can be said for the Swiss market, but that does not appear to be as strong as the FTSE. Distinctly, we are seeing a pattern that demonstrates a decline in confidence insofar as Brussels is able to manage anything,
Now let us look at the DAX. Here our energy models clearly reflect the going ons within Europe how everyone within the Euroland has been shifting to Germany as the hedge against the Euro. For this reason, it certainly appears that we may reach an important high within Euroland before we do in the Swiss or UK markets. We will focus on this interesting contrast at the WEC.
