EUROPE
Published: 18 Oct 2019
1. If CESIEUR crossed above certain value, returns of SXXP: see Tableau here
There seem to be positive correlation of returns with crossing a certain value, with a contrarian ‘bump’ in the range of -80 to -60 for the indicator values:
![](https://research.stouffcapital.com/wp-content/uploads/2019/10/image-12-1024x606.png)
This correlation does changes however if 2008 is excluded:
![](https://research.stouffcapital.com/wp-content/uploads/2019/10/image-23-1024x574.png)
Currently CESIEUR is around -68, below are expected SXXP returns when the indicator is in the range from -65 to -70, it starts to outperform after two months:
![](https://research.stouffcapital.com/wp-content/uploads/2019/10/image-14.png)