This weekend Italy's 3rd largest bank, Banca Monte Dei Paschi is expected to be bailed out. The Italian MIB has rallied to the .382 retracement level of the 2015 - 2016 bear market. The rally from the low of the year is very choppy with a lot of overlap - the signature of a counter trend correction. The 2015 - 2016 decline counts as a extended five wave Elliott pattern. If a top is near, the subsequent decline could at a minimum go back to the low of the year. A larger decline could be as big as the 2015 -2016 bear market.
If MIB turns down soon it could cause other European stock indices to decline and could also be bearish for US stocks.
Mark
If MIB turns down soon it could cause other European stock indices to decline and could also be bearish for US stocks.
Mark