Technical Weekly 27112007

Equities
As you can see on this weekly chart, the DJ Euro Stoxx 50 is testing its 2003 support level.
That level must hold to keep the 2003-uptrend alive!

A successful bounce from that level would be a strong signal and could take us higher for a end year rally.

A break below this level however officially ends the 2003-uptrend, taking the market into a sideways or a bear market trend.

The SP 500 is also testing crucial levels (August low on the daily chart).

A lot of stocks and sectors are now deeply oversold, (YTD :real estate - 34.47%, banks -19.74%, Insurance -16.4%...) which means a short term bottoming process should begin soon.

On the other way, risk is still quiet high and most indices could soon validate big double tops pattern.

Needless to say, a breakdown below those lines could trigger another bearish wave

Bonds

The German 10 year yields fall below 4% confirming the bullish technical outlook for bonds. As you can see on the chart, the first target of the bearish C wave is 3.776, the next one is the strong support zone around 3.7-3.65%.

Brent (Oil)
No change, the Brent has now reached all of my short term targets (the last one was 94$) and have started a short-term pullback.The long term uptrend still prevails.

Euro

No change, long term bullish but target reached and very overbought on all time frames.(montly chart)