Europe’s equivalent to the S & P 500 Index, the STOXX 600 Index, broke out to a new 52-week high last week, helped by an earnings-driven breakout from bellwether LVMH Moet Hennessy Louis Vuitton . The breakout acts as a positive technical catalyst that supports having broad-based exposure to European equities, which can be achieved via the iShares MSCI Core Europe ETF (IEUR) . Last week’s upmove in IEUR resulted in an upward shift in our short-term momentum indicators, suggesting the ETF has emerged from its recent pullback. The short-term catalyst comes within the context of a cyclical bullish long-term trend for IEUR, which is intact above support from the weekly cloud model (shaded area on the chart). (A reminder: The cloud model, also known as Ichimoku, is a forward-looking indicator from Japan derived from mid-points of price and projected forward.) The European proxy is supported by positive intermediate- and long-term momentum, suggesting resistance going back to former support from 2021 ($55) is surmountable. A breakout by IEUR above that level would target final resistance near $60, above which momentum would likely increase. The bullish setup would be invalidated by a breakdown below support from the weekly cloud and 200-day (40-week) moving average ($52) as a point of reference for a possible stop-loss for long positions. Relative to the S & P 500, IEUR has a long-term downtrend in place reflecting underperformance versus U.S equities. However, the ratio of IEUR vs. SPX is showing signs of downside exhaustion per the DeMARK Indicators (red “13” on the chart), supporting improved relative strength in the near term. DISCLOSURES: (None) THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . 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