FxWirePro: Where is EuroStxx50 heading in the near term?

Global stock markets are all bull today but we at FxWirePro, are still talking bear.

Today's rise in global stock market, even if it extends further, we are to remain bear. Today's rise is not unexpected but a welcoming move after days of market bashing. Moreover such correction is more so expected, given the fact that FED chair Janet Yellen is scheduled to testify before house of representative today beginning at 15:00 GMT.

Counting today's move as profit booking spree, we expect global stock market to decline further. Given the fact the European bourses faced much more bearish attack compared to US counterparts, we expect European blue chip index EuroStxx50 to decline further and try to form a base around 2450 area. That area is coinciding with psychologically important 2500 level.

As suggested in another post, we remain bearish on EuroStxx50 in the longer horizon under current turmoil and expect the bourse to reach as low 1500 area. Stop loss for that trade is around 3700 mark but we don't expect it to cross even 3500, unless European Central Bank (ECB) materially changes fundamental.

EuroStxx50 is currently trading at 2810, up 2.5% for the day.