News and Trade Ideas (Indices)

[MongiIG]

FTSE 100 and DAX recover as S&P 500 edges back from record peak

European markets fell hard yesterday but have edged up in early trading. Meanwhile, the S&P 500 continues to drift away from a recent record.

Source: Bloomberg

 

Chris Beauchamp | Chief Market Analyst, London | Publication date: Friday 16 July 2021. IG

FTSE 100

Two days of sharp losses have carried the price back below the 50-day simple moving average (SMA) for the first time in a week.

Gains have stalled at 7170 and the FTSE 100 finds itself near the area of support at 6990. Repeated dips into this area have found buyers, so bulls will be hoping that the same trick can be repeated again.

A move below 6940 would negate this outlook and suggest a deeper retracement.

Source: ProRealTime

DAX

A break higher continues to elude the index, which has fallen back from the record high it briefly touched this week.

One day of losses does not mean a big correction is upon us, however; for that we would need a drop below 15,250. At present, any move towards that level would merely test the lower bound of the recent trading range.

Source: ProRealTime

S&P 500

The price continues to edge back from Tuesday’s record high, but losses are limited. A bigger drop targets the 50-day SMA at 4242, with some potential support at 4300 first.

Source: ProRealTime

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[MongiIG]

Indices still on the back foot after recent losses

Stock markets are struggling as a new week gets underway, with European markets in the red in early trading.

Source: Bloomberg

Chris Beauchamp | Chief Market Analyst, London | Publication date: Monday 19 July 2021 

 

FTSE 100

Friday’s decline has resumed today, with the FTSE 100 at its lowest level since mid-May.

After stalling below 7200 since mid-June there is now a full-blown retracement underway. The first area of support to watch is 6875, a region crucial in April and May. Below this 6600 could potentially come into play.

Dip buyers will want to see a recovery above 7000 to establish a higher low.

Source: ProRealTime

DAX

Three days of notable losses still leave the DAX heading towards the 15,278 lower bound of the recent trading range. A break below this brings 15,000 into view, with dips just below this around 14,950 finding buyers back in April.

As yet the buyers do not appear to have any ability to hold back this market from further declines.

Source: ProRealTime

S&P 500

The S&P 500 has gapped lower and is looking to push back towards the 50-day simple moving average (SMA), currently at 4244.

Since late January pullbacks have either found support at the moving average or have briefly pushed below it before rebounding. Buyers will be watching to see if the same thing occurs this time.

Source: ProRealTime

[MongiIG]

FTSE 100, DAX and Dow regaining ground after sharp selloff

FTSE, DAX, and Dow are back on a more positive footing after a sharp decline yesterday. However, risks remain after breakdown below key support.

Source: Bloomberg

 

Joshua Mahony | Senior Market Analyst, London | Publication date: Tuesday 20 July 2021 

 

FTSE 100 rebounds from key support

The FTSE 100 saw dramatic losses yesterday, with the index falling to a three-month low in the process.

However, we are currently seeing a rebound from the key 6811 region, which represents both the March peak and May low. Despite this, the recent break below 6946 does provide a warning sign that we could see further weakness despite this current rebound.

As such, while we could see further short-term upside, a break through 7151 would be required to bring about a more reliable bullish outlook. Until then, this current rebound could falter as we move towards horizontal (69.46) and Fibonacci (7020-7070) resistance.

Source: ProRealTime

DAX rebounds from Fibonacci support

The DAX has similarly experienced a bout of selling of late, with the index hitting a two-month low yesterday.

However, that selloff has taken us back into the 76.4% Fibonacci support level which held up as new support. Much like the FTSE, the subsequent rebound has now taken us back into the previous breakdown level (15304).

This will be a key line in the sand for us to break through if the index is going to continue its ascent. A break up through that level would signal a potential protracted move higher towards the 15522-15634 deep Fibonacci zone.

Source: ProRealTime

Dow Jones on the rise after sharp slump into Fibonacci support

The Dow fell back below the 34113 support level yesterday, with price retracing into the wider 61.8% threshold at 33838.

With a clear long-term uptrend still in play, this latest pullback looks likely to resolve with a move higher unless we see a break below the June low of 33060. As such, there is a good chance we could see the index bottom out here.

However, we should also be aware of the risk that price falls back towards the 76.4% Fibonacci support at 33540. For now, it looks likely we will see further upside to retrace more of the ground lost since Friday’s peak of 35093.

Source: ProRealTime

[MongiIG]

Indices look to continue Tuesday’s rebound

After the quick recovery on Tuesday, buyers are looking to press their advantage and make further headway.

Source: Bloomberg

 

Chris Beauchamp | Chief Market Analyst, London | Publication date: Wednesday 21 July 2021 

FTSE 100

The FTSE 100 has rallied from the Monday lows, and has made further gains in early trading. Gains now target 7040, and then on to the 50-day simple moving average (SMA) at 7069.

Buyers stepped in to defend 6800, providing a low for now, and while this remains intact a move higher, accompanied by stochastic and moving average convergence divergence (MACD) crossovers, seems likely. A recovery above 6946 solidifies the bullish view.

Source: ProRealTime

DAX

Gains are more muted here, with the price yet to rally back above 15,280 and move back into the zone that prevailed in June. Above 15,280 the price heads onwards to 15,800.

Sellers will be looking for a reversal back below 15,100 and then on to sub-15,000 in order to open the way to a deeper retracement.

Source: ProRealTime

S&P 500

Traders will be asking if that was it for the S&P 500 in terms of the July selloff, after a Tuesday rebound that saw Monday’s losses recovered. This now puts the 4395 peak in sight.

Any more bearish view requires a reversal back below the 50-day SMA at 4252.

Source: ProRealTime

 

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[MongiIG]

Indices still looking for further gains after recovery

Wednesday’s rally solidified the bounce seen on Tuesday, and overall further gains are expected.

Source: Bloomberg

Chris Beauchamp | Chief Market Analyst, London | Publication date: Thursday 22 July 2021 

 

FTSE 100

The FTSE 100 has reclaimed all its losses from Monday and is still looking to make further headway.

The bearish view is now firmly cancelled out thanks to the gains of the past two days as 7040 and then 7200 come into view. Intraday dips will continue to be buying opportunities so long as the price holds above 6950.

Source: ProRealTime

DAX

The DAX is now targeting the 50-day simple moving average (SMA) of 15,564 once again, and from there the previous record highs come into view.

The strong bounce of the past three days restores the uptrend, and leaves the bearish view out of the picture for the time being.

Source: ProRealTime

Dow

After the swift drop and equally swift recovery the Dow is back on course for new record highs, supported by a bullish stochastic crossover from an already-high level.

Now 35,000 and higher comes into view, as the brief shakeout and dip to the 100-day SMA (33,933) prompts more buyers to enter.

Source: ProRealTime

 

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[MongiIG]

Indices’ rally to continue into another day

Indices on both sides of the Atlantic are still in strong form, as the bounce in the wake of Monday’s selloff enters its fourth day.

Source: Bloomberg

 

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Friday 23 July 2021 

FTSE 100

Further gains seem likely here as the FTSE 100 looks to move on above 7000 and target 7200.

Having bounced from the low of the week it looks like further upside is on the way, with the bearish view out of the picture unless we see a reversal back below 6900.

Source: ProRealTime

DAX

Having recovered the 50-day simple moving average (SMA) of 15,567 and moved on above it, the DAX now targets 15,800 and new record highs.

The uptrend has reasserted itself strongly this week, and has cancelled out the nascent bearish view from Monday’s session.

Source: ProRealTime

S&P 500

New record highs for the S&P 500 seem likely after the bounce from earlier in the week, cancelling out the bearish outlook unless a reversal below 4260 takes place.

Source: ProRealTime

[MongiIG]

Indices look for further gains after recent bounce

The week has begun with small losses, but the uptrends of the past few sessions are firmly intact.

Source: Bloomberg

 

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Monday 26 July 2021 

FTSE 100

The FTSE 100 has fallen back from the high seen on Friday, but the bounce from last week’s low is intact.

A renewed move higher heads to 7040 and then on from there, while a drop back towards 6950 and then below 6900 could signal that the bounce has run its course and that a test of 6800 is in the offing.

Source: ProRealTime

DAX

The strong bounce from the DAX's lows of last week is still in place, despite some initial weakness overnight.

This dip appears to be stabilising around the 50-hour simple moving average (SMA) of 15,583. Given the powerful rebound in risk appetite this past week it looks like the buyers still have the upper hand.

Source: ProRealTime

S&P 500

A new record high for the S&P 500 has confirmed the bullish trend once again.

Some weakness overnight seems unlikely to last, although a drop back below 4340 could signal a retracement is at hand.

Source: ProRealTime

[MongiIG]

FTSE 100, DAX and Dow head lower as recovery comes into question

FTSE, DAX, and Dow head lower, with the breakdown for the DAX potentially laying the groundwork for a similarly bearish move elsewhere.

Source: Bloomberg

 Joshua Mahony | Senior Market Analyst, London | Publication date: Tuesday 27 July 2021 

FTSE 100 at risk of downturn

The FTSE 100 has started the day on a negative footing, with the index heading back towards the key 6979 swing-low.

Coming off the back of a deep retracement above the 61.8% threshold, a break back below that support level points towards a potential period of weakness coming into play. As such, watch out for whether that 6979 level breaks as a gauge of sentiment for the day ahead.

Source: ProRealTime

DAX on the slide after breaking support

The DAX has already broken through the key 15542 support level, following a rally up through the 76.4% Fibonacci threshold. There is a good chance this move lower will provide a retracement of the latest rally rather than an all-out capitulation.

However, the break below 15542 does point towards a heightened chance of near-term downside, with a bearish view in play unless price rises through the 15641 level.

Source: ProRealTime

Dow Jones turns lower after record high

The Dow is similarly on the back foot in early trade, coming off the back of a rise into record highs.

That intraday uptrend remains intact unless price falls back below the 34760 swing-low. Such a breakdown would point towards a potential retracement of the rally from 33740.

However, for now we need to see whether or not price ends this intraday uptrend by breaking 34760 as a gauge of sentiment.

Source: ProRealTime

[MongiIG]

Indices look for new gains after mixed few days

While indices have avoided further losses there is still some concern that the bounce from last week has begun to stall.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Wednesday 28 July 2021 

FTSE 100

The FTSE 100's gains have stalled over the past three days, but dips below 6950 have found buyers.

The rally seen since last week needs to push on above 7050 to suggest that further momentum is tending towards the upside.

Source: ProRealTime

DAX

Bulls will be hoping that the DAX's bounce has stabilised above 15,450, after a short-term drop back from last week’s peak near 15,700.

Trendline resistance from Friday’s high continues to hold back progress, so in the short-term a move above 15,570 is needed to provide a more bullish view.

Source: ProRealTime

S&P 500

After touching a record high on Monday the price has weakened, but overall the bounce is intact. Further gains seem unlikely unless we see a move back below 4370.

Source: ProRealTime

 

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[MongiIG]

FTSE 100, DAX and Dow consolidation expected to bring fresh push higher

FTSE, DAX, and Dow consolidation likely to ultimately resolve in another push towards the upside.

Source: Bloomberg

 Joshua Mahony | Senior Market Analyst, London | Publication date: Thursday 29 July 2021 

FTSE 100 rallies back into Friday’s high

The FTSE 100 has managed to push back into the recent high of 7041, with the index largely warding off selling pressure evident on Tuesday.

The ongoing recovery phase points towards a potential move into the 7070 resistance level given the current break through 7041.

From a wider perspective, we would want to see a rise above 7151 to entirely negate the declines seen in mid-July and confirm the uptrend once again.

Source: ProRealTime

DAX pausing after recent recovery move

The DAX has been attempting to regain ground over the past 10-days, with price on the rise after a wider 76.4% Fibonacci retracement.

While Tuesday saw a break back below 15542 support, the lack of follow-through highlights how we are likely to head higher before long.

Watch for a push through the 15641 level to build a more bullish picture once again, with the index likely to grind lower until that upside break occurs.

Source: ProRealTime

Dow Jones likely to push into fresh highs before long

The Dow has seen a brief move into the 76.4% Fibonacci support level at 34858 this week, with the downside moves proving somewhat limited in nature.

A break back below 34761 would signal a potential wider retracement coming into play. Until then, another move higher looks likely from here as we build on the bullish trend.

Source: ProRealTime

[MongiIG]

FTSE 100, DAX and Dow head back into key support

FTSE, DAX, and Dow head lower, but will this retracement represent a buying opportunity for stocks?

Source: Bloomberg

 Joshua Mahony | Senior Market Analyst, London | Publication date: Friday 30 July 2021 

FTSE 100 turns lower from Fibonacci resistance

The FTSE 100 has been on the back foot in early trade, with the index falling back from the 76.4% Fibonacci resistance level of 7085. That decline may not necessarily mark the beginning of a wider bearish phase though, with a break below 6928 required to signal a more protracted downside move for the index.

Until then, it is worthwhile watching to see another potential higher low, with the near-term Fibonacci levels of 6991 (61.8%) and 6967 (76.4%) bringing key levels that could spark another upside move.

Source: ProRealTime

DAX declines provide warning sign for the FTSE

The DAX has similarly sold off from the 76.4% Fibonacci resistance level of 15630, with the index falling towards the key 15420 level. A drop below that level would bring a potential bearish picture into play for the day ahead, highlighting the possibility of a more protracted move lower in Europe.

As such, watch out for whether price breaks the 15420 level as a gauge of sentiment for the day ahead, with such a break bringing about a bearish double top formation.

Source: ProRealTime

Dow Jones falls back towards key support

The Dow has similarly been on the back foot this morning, with the index falling back towards the 34859 level respected over the course of past three days.

With that in mind, watch out for price to potentially find support around the 34859 and 76.4% Fibonacci support zone for the bulls to potentially come back into play. A decline through 34761 would be required to bring a wider bearish picture into play.

Source: ProRealTime

[MongiIG]

FTSE 100, DAX and Dow head higher in early trade

FTSE, DAX, and Dow surge higher in early trade, with the wider uptrend kicking in once again.

Source: Bloomberg

 Joshua Mahony | Senior Market Analyst, London | Publication date: Monday 02 August 2021 

FTSE 100 turning higher once again after Friday retracement

The FTSE 100 has been on the rise in early trade today, with the index continuing its uptrend as expected. The pullback on Friday saw price fall back into the 61.8% Fibonacci support level, with the uptrend subsequently kicking in today.

With that in mind, a bullish outlook continues to hold unless we see price fall back below the 6995 level. Near-term resistance of note comes in the form of the descending trendline and the 7171 mark.

Source: ProRealTime

DAX breaks higher from consolidation phase

The DAX has also kicked off the week with a bang, as an upward move in early trade brings us through the 15661 level to end the recent consolidation phase. That points towards a continuation of the recovery following the mid-June decline into a wider 76.4% Fibonacci support level of 15051.

With that in mind, the break seen this morning points towards further upside to come, with a move back below 15437 needed to detract from this bullish outlook.

Source: ProRealTime

Dow Jones breaks back towards the record highs

The Dow has gapped up towards the prior high of 35175 this morning, with the index looking to form a fresh high after a retracement into the 76.4% Fibonacci level.

A break back below the 34761 level negates the bullish view, with a positive outlook holding until then.

Source: ProRealTime

[MongiIG]

FTSE 100, DAX and Dow expected to gain ground despite consolidation

FTSE, DAX, and Dow struggle to maintain bullish momentum, but will we see the bulls come back into play before long?

Source: Bloomberg

 Joshua Mahony | Senior Market Analyst, London | Publication date: Tuesday 03 August 2021 

FTSE 100 falls back towards trendline support within recovery phase

The FTSE 100 has been on the rise over the course of the past week, with price rising up through the 7100 level yesterday.

However, we are seeing some consolidation below that level, with price moving back towards ascending trendline support. A break below trendline support would raise questions over the ability to maintain this bullish recovery.

Ultimately, however, we would need to see a break below 6995 if we were to negate the current bullish outlook for the FTSE.

Source: ProRealTime

DAX continues to consolidate after recent gains

The DAX has been consolidating over the course of the past week, with yesterday’s early spike failing to hold as price fell back into the consolidation zone.

We remain within that zone and await another break higher. To the downside, a decline through 15437 support would bring a more bearish short-term outlook into play.

Source: ProRealTime

Dow Jones selloff brings potential buying opportunity

The Dow has been on the back foot since yesterday’s rise back into the key 35176 resistance level. With price starting to rise, it is worthwhile watching for another rally back towards the top end of this recent consolidation phase.

A break back below the 34761 support level would be required to bring a more bearish short-term picture.

Source: ProRealTime

 

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[MongiIG]

FTSE 100, DAX and Dow rally back into key resistance

FTSE, DAX, and Dow are on the rise once again. However, with key resistance up ahead, questions remain.

Source: Bloomberg

 Joshua Mahony | Senior Market Analyst, London | Publication date: Wednesday 04 August 2021 

FTSE 100 rising back towards key resistance as recovery continues

The FTSE 100 has continued the ascent which has been playing out over the course of the past two weeks. With price rising back into a confluence of trendline and horizontal resistance, there is a significant region of resistance up ahead around 7151.

With that in mind, the ability to break through the 7151 resistance level will be key to continuing this bullish trend. To the downside, a break below the 7050 level would be required to bring a more bearish near-term outlook for the index.

Source: ProRealTime

DAX reverses back up towards top end of consolidation zone

The DAX has started to regain ground once again, in a move that looks to push the index towards the top end of the consolidation zone seen over the past two weeks. With a wider bullish trend in play, there is a good chance we are going to see a bullish breakout when price does exit this pattern.

However, bulls would probably want to await a break and close above 15692 before taking any fresh positions, with the risk of further consolidation obviously still in play until then.

Source: ProRealTime

Dow Jones back into resistance after latest rise

The Dow has been on the rise after a brief foray below 34760 support yesterday. That takes us back into a key 35175 resistance level, with a break above this point bringing about a fresh bullish signal for the index.

With that in mind, it makes sense to watch out for a potential breakout through 35175 to continue the bullish trend. Until that happens, there is a good chance we will see price drift lower to remain within the recent consolidation zone.

Source: ProRealTime

 

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[MongiIG]

FTSE 100, DAX and Dow likely to bring buying opportunity

FTSE, DAX, and Dow consolidating, with a bullish opportunity coming into play as we await a directional breakout.

Source: Bloomberg

 Joshua Mahony | Senior Market Analyst, London | Publication date: Thursday 05 August 2021 

FTSE 100 pullback brings potential buying opportunity

The FTSE 100 has drifted lower overnight, with the index weakening from trendline resistance.

While the existence of both trendline support and resistance does highlight a rising wedge formation, we would only take a bearish lead from that if price falls back below the 7050 swing-low.

Until then, this pullback brings a potential for another long entry around the ascending trendline and deep Fibonacci support zone (7072-7086).

Source: ProRealTime

DAX consolidates below resistance as we await potential breakout

The DAX looks to be consolidating below the key 15706 resistance level this morning, with the index pausing in a bid to break out from this recent period of sideways price action.

A rise up through 15706 from here would point towards a breakout and likely push towards the prior high of 15816. As such, the ability to break resistance or simply remain within the consolidation zone will be key for the day ahead.

Source: ProRealTime

Dow Jones back into key support after Wednesday decline

The Dow slumped back towards the key 34761 support level yesterday, with the index remaining within a fairly tight range over the course of the past fortnight.

A break out of this 34761-35176 zone will provide us with a fresh directional signal. Nonetheless, with price close to the lower boundary of that range, a bullish short-term outlook is favoured for a move back towards the top of this pattern.

Source: ProRealTime

 

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[MongiIG]

FTSE 100, DAX and Dow expected to resolve higher after consolidation phase

FTSE, DAX, and Dow likely to break higher before long, with recent consolidation expected to resolve upward.

Source: Bloomberg

 Joshua Mahony | Senior Market Analyst, London | Publication date: Friday 06 August 2021 

FTSE 100 drifts back towards trendline support

The FTSE 100 looks to be moving back into trendline support this morning, with gains seen over the course of Thursday fading at the open.

Nonetheless, the intraday trend remains in play unless price breaks below 7050, with the index likely to push higher from either trendline or Fibonacci support (7072-7086).

Source: ProRealTime

DAX breaks resistance as we head towards record highs

The DAX has managed to exit its recent consolidation phase, with the push through 15707 pointing towards a likely rise into record highs around 15816.

The ability to break and hold above that level will be key in determining whether we continue immediately higher or post another retracement for the pair. However, a bullish view holds unless price falls below the latest intraday swing-low of 15661.

Source: ProRealTime

Dow Jones rallies back towards range resistance

The Dow managed to regain lost ground yesterday, with price rising back from the key 34761 support level.

This consolidation phase remains prominent unless broken, meaning that we are soon at risk of another decline back towards the lower boundary. Ultimately, the directional bias will be dictated by the ability to break through either 34761 (bearish) or 35175 (bullish).

Source: ProRealTime

[MongiIG]

FTSE 100, DAX and Dow turn higher after brief pullback

FTSE, DAX, and Dow start to regain ground after brief period of weakness seen at the start of the week.

Source: Bloomberg

 Joshua Mahony | Senior Market Analyst, London | Publication date: Tuesday 10 August 2021

FTSE 100 rallies back up into key resistance

The FTSE 100 has managed to reverse higher in the wake of a brief pullback on Monday morning, with the index rising back up into the 7143 resistance level in early trade.

That break up into resistance does heighten the chance of a bullish breakout from here, with the key 7151 level also coming into play above last week’s high.

With that in mind, the ability to break through this resistance zone will be key in determining whether we can maintain this bullish theme from here. A break below 7088 would be required to bring a more neutral/bearish tone.

Source: ProRealTime

DAX heads higher as we approach previous highs

The DAX has turned higher in early trade today, with yesterday’s pullback proving brief in nature thus far.

The 15816 record high provides us with a clear target and hurdle to overcome if we are to maintain this bullish trend. A break below the 15698 level would weaken this bullish outlook.

Source: ProRealTime

Dow Jones expected to break higher despite recent drift lower

The Dow has started the week on the back foot, with the index falling back into trendline support this morning.

The brief breakout seen on Friday brought about hope that we were set for another trending period after two weeks of consolidation. That may still be the case, yet we are seeing the index pullback first.

Thus, whether we head higher from this trendline or move into a deeper retracement, there is a good chance we will see the bulls come back into play before long. A break below 34761 would be required to negate this bullish outlook.

Source: ProRealTime

[MongiIG]

FTSE 100 makes headway as S&P 500 hits new record

While the DAX is still struggling to push above recent highs, the FTSE 100 is on the up and the S&P 500 is moving to new record highs.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Wednesday 11 August 2021 

FTSE 100

Concerns about a turn lower for the FTSE 100 have been brushed aside as the price marches on towards the June highs above 7200.

The indecisive end to last week has given way to a fresh push higher, and points towards renewed bullish momentum. Continued gains above the 50-day simple moving average (SMA) of 7085 have firmly shut out sellers from this market.

Source: ProRealTime

DAX

The DAX continues to hover just below the highs of June and July, but shows no desire to head lower either.

Revived risk appetite across UK and US markets should drag the index higher, although macro concerns about the German and Chinese recoveries have held back bullish sentiment.

Nonetheless, a move above 15,800 that brings 16,000 into view still seems the most likely outcome.

Source: ProRealTime

S&P 500

The S&P 500 did eke out another record high yesterday, but was unable to hold on to it overnight.

Pre-game nerves regarding today’s consumer price index (CPI) print have held back any rush to push the market higher, a situation amplified by summer’s low liquidity.

Still the buyers appear to have the upper hand, although it is worth noting that the brief and contained selloffs seen this year do tend to occur around the mid-month point.

Source: ProRealTime

[MongiIG]

FTSE 100, DAX and Dow ease back after yesterday’s bullish break

FTSE, DAX, and Dow pause after yesterday’s US CPI-led drive through resistance.

Source: Bloomberg

 Joshua Mahony | Senior Market Analyst, London | Publication date: Thursday 12 August 2021 

FTSE 100 easing back from key resistance

The FTSE 100 has started to ease back overnight following a rise into the 7218 resistance level yesterday. There is a chance we see price retrace from here as long as we remain below 7218.

As such, this resistance level provides us with a key hurdle to overcome, with the ability to break through that threshold likely to prove key in determining sentiment for the days ahead.

Should price fail to break through resistance, any downside would be viewed as a retracement of the rally from 7088. A bullish view is thus held until price falls back below that 7088 swing-low.

Source: ProRealTime

DAX pauses after hitting record high

The DAX has eased back after reaching a new high yesterday, with the index falling back into the previous high of 15816 as newfound support.

Perhaps more importantly, it is worthwhile keeping an eye out for whether we see price break below the latest swing-low of 15698. Should that occur, we would be looking at a more protracted move lower.

Until then, this current pullback likely represents a short-term pullback before we head higher once again.

Source: ProRealTime

Dow Jones surges into fresh highs after CPI reading

The Dow has reacted with optimism after yesterday’s CPI reading that saw some elements such as used car price growth fall back.

While inflation remains elevated, there were some signs that it may have reached a plateau. From a Dow perspective, this rally builds on the recent range breakout, with further upside expected.

As such, further upside looks likely before long, with a decline through 35030 required to negate the bullish outlook.

Source: ProRealTime

 

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[MongiIG]

Indices still on course for further gains, with DAX breaking higher towards 16,000

Stock markets continue to make headway, joined by a newly-resurgent DAX.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Friday 13 August 2021 

FTSE 100

A close above 7218 continues to elude the FTSE 100, but we have seen almost no downside momentum in recent sessions, suggesting that buyers continue to have the upper hand for now.

Any initial target in a move lower is 7088, although this is only likely to be short-term weakness, unless we see the price drop below 7000.

Source: ProRealTime

DAX

The DAX has finally broken out above June and July resistance, opening the way to new record highs and a potential capture of the 16,000 level.

This is a good reminder of how uptrends work: they can go through periods of consolidation but ultimately find a reason to break higher.

After almost two weeks of straight gains some weakness would not be surprising, but overall the bullish view remains intact.

Source: ProRealTime

S&P 500

The S&P 500's upward drift continues with no sign of a reversal, as the price sets yet more new record highs.

After breaking higher in early August, it seems like further upside will continue to play out.

Source: ProRealTime

[MongiIG]

Indices on the back foot after recent gains

The new week has begun with losses, although this has only put a small dent in the gains made over the past month.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Monday 16 August 2021 

FTSE 100

After a month of gains the FTSE 100 is in retreat this morning, although only modestly, moving back from the highs seen at the end of last week and back from resistance around 18-month highs at 7218.

Whether this turns into anything serious remains to be seen, but a move back to the 50-day simple moving average (SMA) at 7092 may find support, or at 7037 where previous weakness in June was held for a time.

Source: ProRealTime

DAX

A surge to a new record high for the DAX last week, which briefly took the price above 16,000, has been followed up with a small drop in early trading.

Initial support could be found at 15,816, previous resistance, and then down towards the 50-day SMA at 15,639. A recovery of 16,000 hands the initiative back to the buyers.

Source: ProRealTime

S&P 500

Like the DAX, this index hit a new peak at the end of last week. A small dip so far this morning fails to put much of a dent in the bounce, but buyers may not want to press their luck too hard in the short-term.

Sellers however need to be careful too, a higher low and higher high in around a month reminds us that this rally is still strong, and weakness is likely to be short-lived, with 4392 and then the 50-day at 4339 potential support.

Source: ProRealTime

[MongiIG]

FTSE 100, DAX and Dow head lower, but could the bulls come swiftly back into play?

FTSE, DAX, and Dow on the back foot in early trade, but will that decline bring about a buying opportunity or further downside?

Source: Bloomberg

 Joshua Mahony | Senior Market Analyst, London | Publication date: Tuesday 17 August 2021 

FTSE 100 falls back into Fibonacci support

The FTSE 100 has been on the back foot over the start of this week, with price falling back into the 76.4% Fibonacci support level.

A break below the 7088 swing-low would point towards a potential wider pullback coming back into play. Until then, there is a good chance we could see the index regain a more positive footing around these levels.

Source: ProRealTime

DAX drops below trendline support

The DAX has been weakening in early trade this week, with price falling back below trendline support this morning. That brings us back into the deep Fibonacci zone between 15777 and 15826.

This raises the likelihood of a bullish resurgence for the index, with a wider bearish picture coming into play in the event that price breaks below the 15698 swing-low.

Dow Jones turns lower after brief record high

The Dow has started to head sharply lower this morning, with yesterday’s push into record highs proving fleeting.

The volatility we are seeing around the apex of an ascending triangle pattern does point towards a potential deeper breakdown if price falls back below the 35231 swing-low. The uptrend remains intact unless price breaks back below that recent low.

Source: ProRealTime

[MongiIG]

Indices struggle to make headway after overnight recovery

Indices managed to edge up overnight but have found that bullish momentum has faded as the new day gets underway.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Wednesday 18 August 2021

FTSE 100

The FTSE 100's bounce from mid-July was rocked over the past two days by a dip, but this has resolved into a higher low around 7110, with the price rebounding once again.

The upside target is now 7220 once again, as the index looks to break to a new 18-month high. This bullish view remains in place unless we see a reversal back below 7110.

Source: ProRealTime

DAX

Some slight turbulence for the DAX  this week barely dents the bounce seen since the middle of last month.

Support came into play around 15,850, with the price creating a higher low above the 50-period simple moving average (SMA) of 15,849. A renewed move above 16,000 now looks likely, leaving sellers once again to wait as a new move to record highs begins.

Source: ProRealTime

S&P 500

Monday’s strong start to the week for the S&P 500 was not immediately followed up, with a brief drop to 4420 taking place.

This seems to have come to an end, with buyers back in control once again and targeting new record highs. The bullish view remains in place unless we see a drop back below 4400.

Source: ProRealTime

[MongiIG]

Fed minutes put heavy pressure on indices

Indices have fallen sharply in the wake of FOMC minutes, with the downward move amplified by the prevailing low volume conditions.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Thursday 19 August 2021 

FTSE 100

A steep drop on the open puts the FTSE 100 below the 50- and 100-day simple moving averages (SMA) of 7093 and 7042 respectively for the first time since late July.

A conclusive break of trendline support and a failure to clear the June highs puts the bearish view firmly in charge, targeting 6874.

Source: ProRealTime

DAX

Losses in EUR/USD have helped to ease some of the fall for the DAX, and for now the drop only retraces some of the gains made since late July.

If the buyers can hold the price above the 50-day SMA at 15,655 then the bullish view is still intact. Further declines below this bring 15,500 and then 15,000 into view.

Source: ProRealTime

Dow

Three days of declines have carried the Dow from a record high to the 50-day SMA at 34,718.

If the price can bounce from this level, then a move back to the record seems likely. Further support could be found at the 100-day SMA at 34,428.

Source: ProRealTime

[MongiIG]

European markets struggle as US stocks aim for a bounce

While US markets rallied off their lows yesterday, the overall cautious view continues to prevail.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Friday 20 August 2021 

FTSE 100

A bounce from yesterday’s low around 7000 helps to negate some of the negative view for the FTSE 100 with dip buyers aiming for further progress back to 7200 and higher, driven by recovering risk appetite.

Sellers will want to see a drop back below 7000 to open the path to additional downside, putting further pressure on the longer-term move higher.

Source: ProRealTime

DAX

Here the bounce appears to have stalled, as the price retreats from 15,816. Yesterday’s low around 15,640 will need to hold if the bullish view is to remain broadly in place.

 

Further gains above 15,800 target the record high around 16,000.

Source: ProRealTime

S&P 500

Yesterday’s bounce seemed to promise a swift recovery, but some of that has eased off with the price dropping back below 4400.

Below 4360 and the S&P 500 heads towards 4240, while a rally above 4420 restores the bullish view and brings 4480 into play.

Source: ProRealTime

[MongiIG]

Indices rally enters a new session

Having finished the week on a stronger note on Friday, the new week has begun with gains as well.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Monday 23 August 2021 

FTSE 100

Friday’s bounce saw the price rally from 7036 and then move back above the 50-day simple moving average (SMA) at 7093.

Buyers came in at 7000 to prevent any additional downside, putting the FTSE 100 back on course to target 7200 once more. A reversal below 7040 is needed to suggest a turn to the downside is at hand on a more extended basis.

Source: ProRealTime

DAX

Similarly this index fell towards 15,600 last week and then bounced on Friday. This puts it back on course to 16,000 and to new record highs if bullish momentum is maintained.

As with the FTSE 100, expectations of a more extended pullback have been negated for now, leaving the buyers in charge.

Source: ProRealTime

S&P 500

The bounce from 4360 is intact, and now the price is back on course for 4480 and higher.

Any potential for a pullback has been cancelled out for the time being as the S&P 500 stages yet another bounce from the 50-day SMA (4358).

Source: ProRealTime

[MongiIG]

FTSE 100, DAX and Dow recovery continues, but hurdles remain

FTSE, DAX, and Dow are on the rise, with the indices regaining lost ground. However, key hurdles remain as markets attempt to negate last week’s breakdown.

Source: Bloomberg

 Joshua Mahony | Senior Market Analyst, London | Publication date: Tuesday 24 August 2021 

FTSE 100 rally starts to lose traction

The FTSE 100 has been attempting to regain ground since Thursday’s lows, with the index pushing towards the 76.4% Fibonacci resistance level yesterday.

Unfortunately, we are seeing some of the momentum fade around that key level, with a rise through 7208 required to provide a more long-lasting buy signal for the index.

Until then, there remains a chance that we will turn lower to continue the recent bearish phase. A move below 7099 brings greater confidence of another short-term decline.

Source: ProRealTime

DAX rallies into trendline resistance

The DAX has been on the rise since finding support on the confluence of 61.8% Fibonacci and 200-simple moving average (SMA) last week.

That rally has taken us back into trendline resistance, with a break up through the 15979 resistance level required to bring about a fresh bullish breakout signal for the index.

The wider bullish trend does point towards an upside break before long, yet the risk of another downside retracement remains until we see price break up through that 15979 level.

Source: ProRealTime

Dow Jones rises back towards record highs

The Dow has recovered much of the downside seen last week, with the index pushing back towards the previous record high of 35634.

Price has pushed marginally above the 76.4% Fibonacci resistance level, highlighting the possibility of another positive day ahead. A more protracted move above that final Fibonacci level would bring about greater confidence in a move into new highs, with any recent bearish sentiment fading in the process.

Thus, the ability to push above this current Fibonacci level should give us an idea of whether this recent rise can be sustained following the rising wedge breakdown.

Source: ProRealTime

[MongiIG]

Indices' gains stall after strong start to the week

The gains of Monday and Tuesday have turned into a more static market environment, with caution developing as the Jackson Hole meeting nears.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Wednesday 25 August 2021 

FTSE 100

Gains for the FTSE 100 have stalled over the past three days; the price hovering around 7110 for the time being.

The strong thrust seen in other markets has been weaker here, with further to go until the price can reclaim the August highs above 7200.

So far the downside is contained, suggesting this is consolidation rather than anything else. A move below 7036 would negate that view.

Source: ProRealTime

DAX

A gentle move higher here has seen the price make further inroads towards 16,000, although a fresh close above this level has yet to take place.

The bounce from the 50-day simple moving average (SMA) of 15,667 remains intact, and for the time being there is very little strength in the bearish thesis.

Source: ProRealTime

S&P 500

This index has headed back to record highs very quickly, as might be expected from its solid performance this year.

A fresh move towards 4500 seems likely, while bearish price action has yet to develop on the daily chart.

As with the Dax, the bounce from the 50-day SMA (4369) is intact.

Source: ProRealTime

[MongiIG]

Dow heads towards record highs, as FTSE 100 and DAX see early weakness

FTSE and DAX head lower as key support comes into view. Meanwhile, the Dow remains on the front-foot as it heads towards record highs.

Source: Bloomberg

 Joshua Mahony | Senior Market Analyst, London | Publication date: Thursday 26 August 2021 

FTSE 100 rolling over from Fibonacci resistance

The FTSE 100 has started to roll over once again this morning, with the index respecting the 76.4% Fibonacci resistance level at 7157.

This could become a more worrying sign for bulls if we see price fall back below the 7075 low established on Tuesday. As such, the ongoing sentiment will be dictated by the ability to break or remain above 7075.

Source: ProRealTime

DAX rolling over towards key support

The DAX has similarly started to weaken in early trade, with the index falling back into the 200-simple moving average (SMA) thus far.

A move below the 15622 level is the key signal that would bring about a more protracted bearish move. Nonetheless, while there is a risk of further weakness, the bulls remain in charge until we see support break.

Source: ProRealTime

Dow Jones on the rise towards new highs

The Dow has managed to avoid the bearish price action seen in Europe this morning, with the index largely consolidating after a week of strong gains.

 

The recent wedge breakdown does raise the risk of another turn lower, yet we have seen all Fibonacci resistance levels taken out to bring a more confident bullish view into play.

With record highs up ahead, there is a good chance we see the index break higher before long. A break below the 35283 level would bring a more bearish short-term view.

Source: ProRealTime

[MongiIG]

S&P 500 edges up but FTSE 100 more mixed

While US markets have held their ground ahead of Jerome Powell’s Jackson Hole speech, European markets have come under some pressure.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Friday 27 August 2021 

FTSE 100

Gains for the FTSE 100 have stalled all week, with the index unable to find the fresh momentum to push on past 7150.

We have yet to see a significant break to the downside, but a move below 7037 would signal a more bearish environment in the short-term.

Source: ProRealTime

DAX

Most of last week's move higher has been reversed, with the price now nearing the 50-day simple moving average (SMA) at 15,673 once again.

Short-term resistance from the August peak held back progress this week. A break above 15,886 would be needed to provide a more bullish short-term view.

Source: ProRealTime

S&P 500

The S&P 500 edged lower yesterday after touching 4500 on Wednesday, but a small recovery overnight has lifted the price off the lows.

A renewed move higher targets 4500 and then into new record high territory. Post-Powell speech (3pm) volatility could see the price head back towards 4392 support.

Source: ProRealTime