Technical weekly 12102007

Equities
Equity indices have maintained a positive trend since last week but are now vulnerable to profit taking.
On the chart of the DJ Euro Stoxx 50 you can see that the risk/reward is not so optimal for the bulls as the index is now close to our first objective of 4540.(dot green line)Moreover the daily Macd indicator is diverging from price and close to give a sell signal.

Most sentiment indicators indicate that investors are becoming complacent on the stockmarket.
The VIX index (RSI 30 day-red line) is now on the rise again.

And the US retail investors turned more optimistic with bullish sentiment back to its highest level since February .(red line)

Bonds
No change, yields may continue to trade sideways in the coming days/weeks but as long as the long term support rising trendline is not broken , I favour an upside target of 4.6%.

Brent
Last week we said that the Brent was not able to make a clean break through the 78-80 resistance zone and that short-term sell signals have just been registered.
In the short-term I think oil may continue to consolidate and test the resistance level.

Euro
After having test the 1.40 support level, the €/$ resume its uptrend.
The upside target is 1.44 and the support zone 1.40.