Tech Focus: Trend Direction Model..........>

EQUITIES: Tech Focus: Trend Direction Model Update: Equity indices are trading

lower:

- This is allowing a recent overbought condition to unwind if we for example

consider ESTOXX 50 and the DAX.

- In both these markets, our trend direction model has reversed to bearish.

- This highlights a potential developing bearish risk and suggests that

near-term at least, it is likely that a risk-off cycle will dominate.

- Note that in the DAX and ESTOXX 50, the previous bull trend reading was

triggered on May 18. While both have reversed to a bear trend today, we will

only be able to evaluate the S&P 500 signal once the US market opens.

- The trend signal does not attempt to identify where price can travel to,

rather it looks to identify what sentiment condition is likely to prevail S/T.

- The chart price frequency is 60-mins.

- See chart: https://emedia.marketnews.com/marketnewsintl/DAX.png