The outside day in French stocks yesterday was the tell
At the open yesterday, the French CAC -40 index hit an 11-year high in what looked like a breakout. It wasn’t.
The index traced an outside day and closed down 1.1% — something I highlighted at the time. Today, it’s down another 2% in the worst day since August.
It’s a reminder that an outside day on a breakout is one of the best indicators there are.