Quotes from BofA Merrill Lynch:
- We remain bullish on European equities, with the Euro Stoxx futures (VGH5) on track to test upside targets at 3553 (measured move of the Jan/Feb Triangle). From a cash index perspective this target roughly equates to 3.25yr channel resistance at 3531. Into here we look for greater signs of stalling.
- While the advance of the past week has been more choppy than anticipated (potential ending diagonal triangle), VGH5 pullbacks should be limited to 3430, while it would take a break of 3397 to indicate a near term top. Until then stay bullish.
