Leading Diagonals do not end well

7 nov 2023

The Leading diagonal pattern in the EuroStoxx 50 index does not bode well for the European stock markets. Bounces from such a pattern do not last and at 38.2% the X wave that formed in the last 2 weeks appears more than sufficient for the start of a gigantic decline in European equities. That is how I have seen this pattern play out in the past and therefore all hands on deck. Or maybe jump off the deck. We should be in for a brutal shock from Europe if this was a leading diagonal, and it looks like that to me.