Could Italian equities be the canary in the mine?

I find the iShares MSCI Italy ETF interesting for two reasons. One, so far, it is a textbook example of a triangle formation that has spanned nearly nine years. Two, if the triangle pattern holds and the Italian markets turn down, could that be a precursor to other European equity markets topping and even mark a turning point in the Euro?

I don’t know if the triangle pattern will hold or if it will be an early warning to other problems on the continent, but it does look like a trading opportunity is nearby.

iShares MSCI Italy ETF 2017-05-29

The formation for the last eight years has been that of a sideways converging pattern, a potential triangle. We initially started following this last year talking about the possibility of [d] of the triangle being set and to prepare for a bounce up into first quarter...

iShares MSCI Germany ETF (EWG) 2017-04-30

The MSCI German ETF (EWG) has what is thus far a corrective structure up from 2009 to 2014 and a possible ugly leading diagonal down to the 2016. From there, the move up looks like a three into a standard deep retrace value. This area is also roughly a test of the...

DAX futures 2017-04-14

I’ve changed my large scale thinking on the DAX. Originally, was counting up an impulse from a possible large triangle that had wave ‘e’ of the triangle at the low of 2011. That had a nice converging look to it but problems with the internal counts...