European equities could either swing into a final high or their cyclical high has been reached already. The Euro Stoxx 50 Elliott wave structure continues its price action in a complex manner.
The Eurostoxx 50 is close to a breakout scenario as we publish this update. The orange trend channel has been penetrated already. A resolution to the upside must be confirmed by other major European equity indices. It will break important trend channels and resistance levels. European equity indices need either a retest and continuation to the upside or outright bullish action without a significant correction. That kind of action will shift odds towards the black scenario.
The alternative scenario is depicted in red. It shows a leading diagonal from last year high to the downside. It could become visible if the current breakout attempt fails. The Eurostoxx 50 is closer to the black scenario at the moment. However, it is not a done deal yet. The index has to show continuation on the upside.
