While Europe is certainly not turning bullish, what we do see is a bounce due to the fundamental focus of the US debt ceiling battle looming on the horizon.

Naturally, the press will be blaming Trump so we should be prepared for headlines like “US Going To Default”. The press will use this incident created by Obama and Boehner to score as many points against Trump as possible. Facts mean nothing to mainstream press. They have their agenda and that is not going to suddenly change. So we should expect dire headlines about how the USA will default and all this may provide a bounce for the Euro for up to two months until the French elections on May 7.

Keep in mind, this is a slow and agonizing process that cannot be stopped. The economic and politics of Europe are a total disaster because politicians now make decisions to protect their jobs and pensions from Brussels. There is traditionally the false move that get people offsides so we should bounce before we collapse.

The key resistance will be 10855 and a weekly closing above that level will point to a rally back to the 11050 area. March needs to close above 11300 on a pure technical perspective to raise any hopes of a more prolonged rally beyond two months.