Recent activity in this index.....>

EUROSTOXX50 TECHS: Recent activity in this index highlights a clear trendline

breach late last week and this was reinforced on Monday following the sharp move

lower. Price has recovered however; a lot of work still needs to be done to

alleviate the bearish threat:

- The trendline drawn off the Aug 15 low is key. Given that it has been

breached, it now represents an important resistance. The line intersects at

3767.63 and represents a key resistance today should the index extend its recent

recovery.

- While the trendline holds, the outlook remains bearish and weakness below

yesterday's low of 3671.74 would open 3625.00, Dec 10 low and 3594.80, Dec 3

low.

- If price overcomes the resistance, all eyes will be back on 3800.00 and the

trend high of 3813.80, Jan 17 high.

- 3767.63 represents a key pivot level for now.