The key European indices previously generated technical buy signals in a cluster in mid-July 2016, which identified the technical turning point in the region, and flagged Europe as a positive theme as detailed in a Wire at the time (VIEW LINK). Last night, the CAC40 index generated a technical top formation / activated a technical sell signal. The CAC index had originally generated a technical buy signal at 4264 on 11/7/16 which was followed by a secondary technical buy signal generated at 4504 on 11/8/16. The sell signal generated overnight is the first (negative) trend change in the CAC index since the buy signals were generated in July/August 2016. The downside technical target is located at 4950 - the minimum expectation for a pullback. At this stage, the CAC is the only European index that has generated a technical sell signal.