European stocks approach peak with US election results

The DAX is at 26,658 with strong upward momentum, posting a 2.59% gain over the past 24 hours. The RSI at 75.5 places it in overbought territory, indicating limited upside potential or risk of profit-taking in the short term. The MACD is above its signal line and the price is above the SMA20/SMA50, confirming a positive trend. Optimism regarding US election results may support risk appetite in the short term, but the overbought level warrants caution. I see the direction as upward but maintain medium confidence.

The SPX rose approximately 2% over the past 24 hours to reach 7688 and is trading above both its SMA20 and SMA50. The MACD is clearly above its signal line and the RSI stands at 58, well away from overbought territory, suggesting momentum may continue in the short term. European equities rising on the U.S. election results indicate increased risk appetite, which typically has a positive spillover effect on U.S. indices. However, election-related news flow may be volatile, so I am keeping confidence at a moderate level. A slight upward bias is expected over the 1-3 day outlook.

The FTSE closed up 1.42% at 10916, trading clearly above its SMA20/SMA50, indicating a positive short-term trend. However, RSI14 at 70.6 has entered overbought territory, and while MACD remains in positive territory, some of the momentum may already be priced in. News regarding US election results could support risk appetite on the theme of reduced uncertainty and create moderate upward pressure on the index in the short term. Nevertheless, given overbought conditions and the possibility that the news is already priced in, it should be noted that the upside may be limited and volatility could persist. I foresee a cautiously positive bias over the 1-3 day outlook.

The CAC index rose 2.4% over the past 24 hours to reach 8242, showing a strong trend above its SMA20/SMA50. However, RSI14 at 71.5 has entered overbought territory, raising the risk of a short-term correction. MACD remains above its signal line, supporting positive momentum. Optimism over US election results could sustain upward pressure in the near term, but the overbought level points to limited upside potential. I therefore expect a cautious upward bias over the 1-3 day outlook.