European and French stock markets have a huge influence on stocks in the states. The first two charts below look at London's FTSE 100 and France's CAC 40.
The FTSE's trend remains up and no single-day action will change that. What does get our attention is that this key index is testing the underside of a 10-year rising channel at (1).
Like the FTSE, the CAC's trend remains up. Another similar chart pattern can be found, as the index is testing the underside of a multi-year rising channel in the chart above.
The Dow's trend is also up. The rally of the past few years has the Dow testing the underside of two long-term channels at (3), as momentum is the highest since the late 1990s at (4).
Bottom Line For All 3
Trends remain up for each of these key indices. Each happens to be testing the underside of long-term rising channels at the same time. Bulls in London, France and the States would prefer that reversal patterns and selling pressure NOT start at the underside of potential resistance at the same time.