The EURO STOXX 50 tracks the Eurozone’s supersector leaders, resulting in a diversified and liquid portfolio. The index’s weighting is based on free-float market capitalization, with a maximum weight of 10 percent per constituent. The blue-chip benchmark underlies more than 25 billion euros in ETF assets, while futures and options on the index are the most actively traded equity index derivatives on Eurex. More than 160,000 structured products are linked to the EURO STOXX 50.
EURO STOXX formed a peak in 2000 which was followed by a 9 years’ long correction which ended in 2009. It has since been edging higher gradually and has finally managed to make a new high above 2000 peak in 2025 to officially mark the start of a new bull run in the Index. EURO STOXX bulls waited 25 years to retake the 2000 high and now it’s time for them to celebrate with Index looking bullish for higher targets. Let’s take a look at the key takeaways from this break.
EURO STOXX Monthly Elliott Wave Chart
- EURO STOXX Breaks Above 2000 peak after 25 years – This marks an end to a prolonged period of depression for the Index bulls but now it’s time for them to party as the Index is starting a new long-term bullish cycle.
- Break above 2000 peak creates an incomplete bullish sequence and makes the Index bullish. Cycle from 1987 – 2000 lasted 13 years. Cycle from 2009 low is already bigger in time than the 1987 – 2000 cycle. This cycle is arelady in year 16, 161.8% Fibonacci time extension will be reached in November 2028.
- Rally since 2009 low is incomplete and has not yet reached 100 0 123.6% Fibonacci extension area between 5861 – 6478. Rally since October 2022 low also has an incomplete swing sequence and pull backs should be a buying opportunity. Sellers should stay away as far as October 2022 low remains intact.
- Buyers should be in control as far as August 2024 and October 2022 lows remain intact. Any pull backs which reach 100 – 161.8% Fibonacci extension area should be a gift for buyers and an opportunity to take a good entry in the market to catch the next leg up in the Index.
- Long-term target is between 7281 – 8587 which is 100 – 123.6% Fibonacci extension area of 1987 – 2000 cycle projected higher since 2009 low. This represents a minimum gain of 33.7% from current levels even if only the lower level at 7281 is reached
