CAC forecast for the week of October 27, 2014, Technical Analysis

The Parisian index initially dipped lower at the open during the week, but the €4000 level turned back around the bearish pressure and send the market much higher. With that, we closed above the top of the hammer from the previous week, thereby sending a longer-term buy signal into the marketplace. With that, we feel that this market will then head to the €4500 level, and should continue to attract traders all the way out. Recognize that there will be a little bit of bumping us on the way higher, but ultimately that is the signal.