Technicals - key European index buy signals generated

Yesterday it was flagged that key European indices had the potential to generate technical buy signals. As a result of of the further rally last night the Eurostoxx 50 (see chart below), DAX and CAC indices closed above key resistance barriers, thereby generating technical buy signals. It is a positive momentum indicator for the European market outlook that these index buy signals have been generated simultaneously. Situations where a "cluster of signals" have been generated within a particular sector of the market, or at a regional level, has previously been accurate in identifying major turning points. The most recent illustration of this was the key European index sell signals generated on 13/6/16, prior to the market sell off.