Despite the pullback, a primary uptrend remains in place for the CAC 40, in addition to the related iShares MSCI France ETF (EWQ) .
Both proxies for French stocks appear to be finding their footing, which suggests that the market is welcoming the latest news regarding the election.
Once the final outcome is determined, it would be natural for investors to respond favorably to the removal of uncertainty, particularly given the oversold status of French stocks.
This suggests a counter-trend phase of outperformance is possible for French stocks versus U.S. stocks.
Recent stabilization in many French stocks shows a positive reaction to widespread intermediate-term oversold conditions, which we gauge using the weekly stochastic oscillator.
Persons:
LVMH Moet Hennessy Louis Vuitton, Katie Stockton
Organizations:
CAC, CNBC, NBC UNIVERSAL
Locations:
France, EWQ