The Milan index had a subtle, yet strong day as the market crossed the 16,000 level. This market is currently trying to break above overhead resistance, and it seems as if it is gaining a bit of momentum as time wears on.
Looking at this index, it does seem that Italian stocks are primed to go much higher. We have had a fairly wicked pullback recently, but as you can see we have wiped out most of those losses. Also, it should be noted that the pullback occurred after an extremely strong month of August in this market.
This in mind, we are looking to buying this market in general, and Italian bank stocks as well as other high beta names. However, we would like to see some type of pullback as we are so close to a massive resistance area. Once we get that, we will be more than willing to buy supportive daily candles.