Our Insights

Tactical Idea: Outperformance Euro Stoxx 50 vs S&P 500

Written by Paris Analyst team | Apr 20, 2020 8:36:06 AM

On a Tactical horizon, we are expecting a 10% to max 15% Euro Stoxx vs SP out-performance over the coming two to three weeks.

The Strategic context The ratio reached our Trend target at 1.01 (0.95 in excess). This level must hold to avoid further drop to 0.75 (further 25% under-performance). First resistance to surpass at 1.15 before 1.25/28 (21 and 50-month moving averages) to confirm a change of dynamic. The RSI is testing the support at 32% for a bounce reaction.

 

Our Tactical View: 10% to max 15% Euro Stoxx vs SP out-performance expected over the coming 2/3 weeks. Reinforcing this idea, a Perfect Daily timing buy signal has been locked on lows at 1.

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