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Coppock reflects European optimism

January brought a wave of unofficial buy signals for European markets - but they could prove short lived
February 13, 2015

Our Coppock indicators cranked up a gear in January, with no fewer than eight markets offering up new signals.

The bulk of these were cancelled sell signals - what we would in the past have described as an unofficial buy - in European markets, lifted by news that the European Central Bank plans to implement a programme of unsterilised quantitative easing. The signals present a major reversal of a lon-standing pattern - in December, every European market covered by our Coppock indicators was a sell. Whether the newfound confidence holds is another question altogether - the Dow Jones' December cancelled sell has been quickly reversed, while Russia's Micex has been flip-flopping between signals since trouble escalated in Ukraine. And the optimism that has lifted European markets could quickly dissipate if Greek problems escalate. That country's index remains a sell.

January's Coppock signals

BuySell
US DJ Industrial Average
Mexico Bolsa IPC
Cancelled sellsCancelled buys
New Zealand NZX 50None
Netherlands Aex Index
Belgium Bel 20 Index
Ireland SE Overall Index
Sweden OMX Stockholm30 Index
Russia Micex Index

North AmericaOctNovDecJanLatest signalLatest signal (date)
SPX38.1337.1735.9932.38SELLMar-14
DJINDUS24.9724.725.0522.6SELL*Jan-15
NASDAQ 10057.5657.0154.7550.29SELLSep-14
NASDAQ COMP50.0247.7244.8640.07SELLApr-14
S&P/TSX35.3333.6130.4926.9SELLOct-14
Asia Pacific, Africa
BANGKOK S.E.T. - PRICE INDEX10.0516.9919.8224.32BUYJun-14
FTSE BURSA MALAYSIA KLCI - PRICE INDEX13.1910.447.14.22SELLMay-14
FTSE CHINA B 35 - PRICE INDEX-4.83-0.866.0312.85BUYAug-14
HANG SENG - PRICE INDEX1111.111.1511.3CANCEL SELLOct-14
KOREA SE COMPOSITE (KOSPI) - PRICE INDEX4.983.942.040.36SELLOct-14
IDX COMPOSITE - PRICE INDEX18.19523.41226.79930.408CANCEL SELLJun-14
STRAITS TIMES INDEX L - PRICE INDEX5.026.859.1210.93CANCEL SELLJul-14
TAIWAN SE WEIGHED TAIEX - PRICE INDEX24.123.2922.6521.96SELLSep-14
TOPIX - PRICE INDEX27.1825.8326.727.3CANCEL SELLDec-14
ASX 200161310.99.9SELLSep-14
NZ 5019.4219.0718.5219.48CANCEL SELL*Jan-15
JSE TOP 4041.1936.8432.3828.67SELLSep-14
SENSEX61.8667.9269.1772.28CANCEL SELLMar-14
South America
MEXICO IPC (BOLSA) - PRICE INDEX10.412.3613.4212.27SELL*Jan-15
BRAZIL BOVESPA - TOT RETURN IND9.1911.4910.577.47SELLDec-14
MSCI EM LATIN AMERICA U$ - PRICE INDEX-4.023-4.261-7.172-12.006CANCEL BUYNov-14
Europe/UK
AEX INDEX (AEX) - PRICE INDEX25.4624.0922.622.9CANCEL SELL*Jan-15
ATHEX COMPOSITE - PRICE INDEX37.0723.855.25-14.95SELLJun-14
ATX - AUSTRIAN TRADED INDEX - PRICE INDEX-5.06-9.04-14.67-19.36SELLDec-13
BEL 20 - PRICE INDEX35.7334.432.5432.86CANCEL SELL*Jan-15
DAX 30 PERFORMANCE - PRICE INDEX31.0728.1424.4523.29SELLJun-14
EURO STOXX 50 - PRICE INDEX29.15426.39822.09219.841SELLJun-14
FRANCE CAC 40 - PRICE INDEX21.3518.1214.1412.6SELLJun-14
FTSE 100 - PRICE INDEX7.386.284.393.33SELLDec-13
FTSE 250 - PRICE INDEX18.2914.611.759.12SELLDec-13
FTSE ALL SHARE - PRICE INDEX9.27.655.584.24SELLDec-13
FTSE MIB INDEX - PRICE INDEX46.8841.2831.7225.48SELLJul-14
IBEX 35 - PRICE INDEX49.945.2537.5930.97SELLSep-14
IRELAND SE GENERAL (ISEQ) - PRICE INDEX32.6730.2929.3529.73CANCEL SELL*Jan-15
OMX STOCKHOLM 30 (OMXS30) - PRICE INDEX28.0127.3326.8428.18CANCEL SELL*Jan-15
OSLO EXCHANGE ALL SHARE - TOT RETURN IND46.0540.0134.1228.8SELLSep-14
PORTUGAL PSI-20 - PRICE INDEX11.130.54-11.88-22.34SELLJun-14
RUSSIAN MICEX INDEX - PRICE INDEX1.993.180.945.6CANCEL SELL*Jan-15
SWISS MARKET (SMI) - PRICE INDEX20.2620.9520.4416.84SELLDec-14

*New signals