Global Market Play Book: Master Levels
The major stock indexes in the United States and Europe have staged a massive rally over the past week. The catalyst for the large point move is credited to another Greek bailout package. This is the second bailout and austerity package for Greece in just two years. This current bailout has very little to actually do with Greece itself. This bailout for Greece was just another way to protect many of the major banks that are holding bad European debt. In any case, the major European stock indexes rallied sharply higher into the end of the trading week. In this week's report, we will isolate important resistance levels for a few of the leading European stock indexes.
The German DAX Composite has been the strongest stock index in the European Union. This index did not come close to its March 2011 lows which were just under the 6500 level. This leading Euro-zone index continues to lead the markets higher and must be followed closely by all traders. Please examine the chart below to find all near term resistance levels of which the Pros will keep on their radar.
The Spanish Bolsa de Madrid IBEX 35 Index soared higher this past week after the Greek austerity vote passed. This is one of the weaker stock indexes in the European Union. You can easily see that the low made last week in this important index exceeded the March low. Traders should know that new lows are always a sign of weakness. Spain, and Italy, are the two nations in the Euro-zone that are expected to eventually need a bailout. The unemployment rate in Spain remains extremely high, especially among young people. Traders can look at the chart below for important resistance levels.
The French CAC 40 Index rallied higher along with every other major stock index last week. Unlike the Spanish Bolsa chart this index made a higher low pattern by not trading down to the March 2011 level. Many investors consider France to be the strongest country in the Euro-zone next to Germany. Traders should follow the chart below to see the next important resistance levels for this leading European stock index.