Euro Stoxx 50 set to hit new record highs above the 4500 level – Credit Suisse

Europe is the preferred global equity market for the Credit Suisse analyst team, which also continues to pick up momentum. The Euro Stoxx 50 is approaching its next objective at 4176, where a temporary pause is certainly possible. Above in due course can expose the psychologically important 4300 mark, before 4500/73, the all-time highs.

See: S&P 500 Index resumes its bull trend targeting the 4350 mark – Credit Suisse

Uptrend starts to gain momentum

“The Euro Stoxx 50 uptrend is gaining momentum and the market is approaching our next objective at 4176, the November 2007 low. Whilst a pause from here should be allowed for, above in due course can then expose the next psychologically important 4300 mark, before 4500/73, the all-time highs.”

“Immediate support rises to 4070, with support from the 63-day average, currently at 3991 expected to provide a solid floor. Below would most likely lead to a test of the recent May range low at 3858, which is not our base case.”

“Europe continues to show signs of improvement relative to MSCI World but although we see scope for a deeper correction higher within the long-term multi-year relative downtrend over the next 3-6 months, there is a risk in the near term we may yet see further sideways ranging.”