CAC | Our expectations:
Three consecutive large bearish candles give a very strong signal of a likely fall in the French index. To refine the risk, we should wait a correction close to 5474 with Stop 5520.
Broad medium-term consolidation as the price is still at the top part of it. Breakthrough below 2 key levels of horizontal support - current resistances increase the probability of a downward impulse.
DeM (14) is still above 0.3 as a break below this level will further confirm the possibility of short.
Fundamental: The Italian crisis and the growing uncertainty in Spain are negative for stock markets in Europe.
Alternative Scenario: If the price returns and holds above 5474, it can turn sentiment to positive.
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