The benchmark Euro Stoxx 50 Index may tumble a further 15 percent if it ends the week below a support level of 2,700, according to a technical analyst at Aviate Global LLP. “Our concern for several weeks has been the ability for the Euro Stoxx 50 to hold its 2,700 support level,” Riccardo Ronco, head of technical analysis at Aviate Global, said in e- mailed comments yesterday. The “technical outlook is anything but bullish for the medium term.” If the Euro Stoxx 50 breaches 2,700, the “most likely” next area of support is at 2,300 to 2,400, Ronco said. That’s as much as 15 percent below yesterday’s close of 2,709.14 in the benchmark gauge for euro-area equities. The measure has plunged 12 percent from this year’s high in February as contagion from Greece’s debt crisis threatens to spread to the bigger economies of Italy and Spain. In the U.S., the Standard & Poor’s 500 Index is “much stronger on a relative basis,” Ronco said. He said a weekly close below 1,250 would push the S&P 500 down to the 1,100 to 1,150 level. To contact the reporter on this story: Conor Sullivan in London at csullivan39@bloomberg.net To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net

Source