News and Trade Ideas (Indices)

[MongiIG]

Dow, Nasdaq 100 and CAC40 push higher

Indices have moved higher on Monday, with signs that the rally may continue today.

Source: Bloomberg

 

 

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Tuesday 12 September 2023 

Dow makes further gains

The index has spent the past three sessions rallying from last week’s low, and is now challenging the 50-day SMA from below. A close above 35,000 is critical to a renewed bullish view emerging, as this would signal that a higher low has formed in late August and early September, and could see a fresh move back to 35,600, the highs from July. Sellers will need a close back below 34,280 in order to suggest that a new leg lower is developing.

Source: ProRealTime

Nasdaq 100 rallies off 50-day

MA After stabilising on Friday, the index pushed back above the 50-day SMA on Monday, setting up another possible attempt to break above the late August high. From there the 15,760, 15,932 and then the 16,021 levels come into view.

The recovery from the August lows has helped to renew the bullish view. It would require a move back below 15,270 to negate the short-term bullish view, and this might then bring the 14,690 support zone back into play.

Source: ProRealTime

CAC40 rises for another day

The index maintained the bullish momentum seen on Friday, after the price rallied back above the 200-day SMA. Having averted a deeper pullback for now, the index could now push back to 7400, or on to the late July highs at 7509.

This would then put the index back on course to target the 2023 high at 7588. Sellers will need a close back below 7110 to result in another test of the 7100 support zone.

Source: ProRealTime

[MongiIG]

FTSE 100, DAX 40 and S&P 500 drop ahead of US CPI

Outlook on FTSE 100, DAX 40 and S&P 500 following a drop in tech stocks ahead of Wednesday’s US CPI data release.

Source: Bloomberg

 Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Wednesday 13 September 2023 12:41

FTSE 100 drops on disappointing UK growth

The FTSE 100 is about to end its four straight day winning streak as much weaker-than-expected UK GDP pushes the index lower. UK GDP dropped by 0.5% month-on-month in July, the quickest pace in seven months, versus an expected 0.2% decline. Year-on-year GDP dropped to 0% versus a forecast 0.4%.

The UK blue chip index is seen slipping back towards the 55-day simple moving average (SMA) at 7,476. Below it the breached July-to-September downtrend line at 7,468, because of inverse polarity, might also act as support. While this and last week’s highs at 7,524 to 7,551 cap, the index is expected to range trade with a slight downward bias. Only a rise and daily chart close above Tuesday’s high at 7,551 could open the way for the 200-day simple moving average (SMA) at 7,638.

Source: ProRealTime

DAX 40 on track for second day of losses

The DAX 40 is heading back down again as European Central Bank (ECB) sources suggested last night that inflation forecasts would remain above 3% in 2024, strengthening the view that an interest rate hike will follow at the meeting on Thursday. Last week’s low at 15,575 is thus back in focus.

As long as it holds on a daily chart closing basis, Monday’s low at 15,723 may be revisited. The next higher July-to-September downtrend line at 15,850 and the 24 August high at 15,895 are unlikely to be revisited on Wednesday, though. Were last week’s low at 15,575 to be slid through on a daily chart closing basis, the 200-day simple moving average (SMA) and August low at 15,528 to 15,469 would be in focus.

Source: ProRealTime

S&P 500

Following a weaker finish on Wall Street, where tech stocks fell after disappointment around the Apple product event and pre-CPI nervousness, the index remains under pressure. A tumble back towards last Thursday’s low at 4,430 low may be underway.

Provided that last week’s low at 4,430 holds, a bounce back towards the 24 August high and the 55-day simple moving average (SMA) at 4,474 to 4,479 may once more be seen, though. Above these sits this week’s high at 4,491 which needs to be overcome for the bulls to be back in control. A drop through 4,430 would put the March-to-September uptrend line at 4,416 on the map.

Source: ProRealTime

[MongiIG]

Dow, Nikkei & CAC40 edge up in morning trading

Indices had a poor start to the week yesterday, but have picked some small gains in early trading today.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Tuesday 19 September 2023 

Dow holds above trendline support

After Friday’s slump the index struggled to make much headway on Monday. The 35,000 level is the barrier to any short-term upside, beyond which the highs of August towards 35,800 loom. For the moment, trendline support from the August low continues to hold, propping up the index and preventing any near-term decline. A close below 34,500 would be a bearish catalyst, and see the price test the early September low (34,330), then the 100-day SMA, and then the August low just above 34,000.

Source: ProRealTime

Nikkei 225 consolidates after recent surge

After surging on Thursday last week the index has seen a loss of momentum, though it has held on to most of those gains. As with the Dow, trendline support from the August low continues to underpin the index. It would need a close back below 33,000 to suggest that a bearish view prevails in the short-term. Further upside targets the June highs at 34,000, once the 33,500 level has been breached on a daily close basis.

Source: ProRealTime

CAC40 fights to remain above 200-day MA

The CAC40 suffered a severe loss of momentum on Monday, reversing from Friday’s 7400 high. Once more the index has seen bullish momentum fade, and a return to the 200-day SMA look likely. This has stalled any deeper retracement since mid-August, while below this the 7100 support zone looms. A close above 7400 would provide a much-needed bullish catalyst, and open the way to 7508 and 7587.

Source: ProRealTime

[MongiIG]

FTSE 100, DAX 40 and S&P 500 try to stabilize ahead of FOMC meeting

Outlook on FTSE 100, DAX 40 and S&P 500 as German PPI comes in stronger-than-expected while UK CPI inflation slid by more than previously forecast.

Source: Bloomberg

 Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Wednesday 20 September 2023 10:09

FTSE 100 rises as UK inflation diminishes

The FTSE 100 bounced off its 200-day simple moving average (SMA) at 7,643 as UK consumer price inflation (CPI) for August came in at a better-than-expected 6.7% year-on-year (YoY) versus an expected 7.0% and 6.8% in July. Core inflation dropped to 6.2% YoY versus 6.9% in July and an expected 6.8%.

Potential upside targets are the 7,723 July peak and at last week’s 7,747 high ahead of Thursday’s Bank of England rate decision where another 25 basis-point rate hike may still be on the cards. If these highs were to be exceeded, the psychological 7,800 mark and the 7,817 8 May high could be in focus. A fall through Wednesday morning’s 7,636 low would engage the 10 August high at 7,624 and perhaps also the early July high at 7,562.

Source:ProRealTime

DAX 40 continues to range trade

The DAX 40 is trying to stabilize ahead of today’s US Federal Reserve (Fed) rate decision despite German producer prices (PPI) coming in at a higher-than-expected 0.3% month-on-month (mom) in September versus a forecast 0.1% and -1.1% in August.

Minor resistance sits at the 7 September high at 15,797 and further resistance can be spotted at the 15,871 11 September peak. Below Tuesday’s low at 15,629 meanders the 200-day simple moving average (SMA) at 15,563 and lies last week’s low at 15,561.

Source:ProRealTime

Risk-off for S&P 500 ahead of FOMC

Following last Friday’s Bearish Engulfing pattern on the daily candlestick chart the S&P 500 slid for three consecutive days ahead of today’s Federal Open Market Committee (FOMC) at which no rate hike is expected. Future economic projections will take centre stage, though, to see whether rates will have to remain higher for longer given resurging inflationary pressures such as the swift rise in the oil price.

As long as Tuesday’s low at 4,416 holds, a rise back towards the 4,474 to 4,482 24 August high and 55-day simple moving average (SMA) may unfold. Only a currently unexpected bullish reversal and advance above last week’s high at 4,516 would put the bulls back in control, though. Failure at 4,416 would open the way for the 4,378 July low.

Source:ProRealTime

[MongiIG]

Dow, Nasdaq 100 and Nikkei 225 all fall back after hawkish Fed decision

The Fed’s ‘hawkish pause’ has sent markets into a tailspin, with stocks falling as investors contemplate the prospect of a much longer period of higher interest rates in the US.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Thursday 21 September 2023 11:43

Dow slumps following Fed decision

The index saw a substantial reversal yesterday, and has moved back towards the lows of last week. The 100-day SMA could now provide some support, but below this the 34,000 level and the 200-day SMA could also see some buying emerge. A revival above 35,000 would be needed to secure a more bullish short-term view.

Source:ProRealTime

Nasdaq 100 gives back more gains

Losses continue here, with yesterday’s drop further eating into the gains made from the August lows. The price is currently sitting on the 100-day SMA, and a close below this opens the way in short order to 14,690. Below this the August low at 14,500 comes into view. From here, the next major level to watch would be the August 2022 high at 13,722. A rally above 15,300 would be needed to suggest that the buyers have succeeded in reasserting control.

Source:ProRealTime

Nikkei 225 sees further losses

The drift lower of earlier in the week has turned into a more dramatic move lower. This has put the sellers back in control. Below the 50- and 100-day SMAs, the price then moves on to target 32,076, and then to the August low at 31,295. Buyers will want to see a move back above 33,000 to suggest that the selling has been halted for the time being.

Source:ProRealTime

[MongiIG]

FTSE 100 at one-year high and DAX rallies, while S&P 500 keeps struggling

European indices have outpaced their US counterparts in recent days, as the S&P 500 continues to find it hard to keep rallying.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Wednesday 27 September 2023 11:41

FTSE 100

Yesterday’s push opened the door to fresh post-pandemic highs and puts the buyers firmly back on top. Expectations of a potential turn lower back towards 7200 and further down have been cancelled out, with the index now targeting 7500 and 7650 to the upside.

Source: ProRealTime

DAX

Thursday saw the index recoup lost ground and make a new record high, and with this now achieved bullish momentum will likely carry the price to fresh highs. There is still no sign of a pullback, and with the index at a new higher high even a drop back towards 15,800 would still be more of a potential buying opportunity.

Source: ProRealTime

S&P 500

By contrast a small retracement continues here, with the index unable to rally back to previous highs as yet. Declines continue to target 4550 as an initial area of support. A recovery back above 4675 could easily see the buyers take control once again.

Source: ProRealTime

[MongiIG]

Dow, Nasdaq 100 and CAC40 struggle in early trading

Indices are under pressure again as oil prices and bond yields continue to rise.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Thursday 28 September 2023 11:38

Dow eats into Wednesday’s recovery

The index briefly slumped to its lowest level since early June yesterday, heading towards the 33,230 level. A rebound from the lows helped to avoid another weak close but the general bearish move remains firmly in place. More losses target the May lows around 32,700. Buyers will be looking for a move back above 33,827 and the 200-day simple moving average (SMA) to suggest that a low has formed. Intraday movement has been capped by the 50-hour SMA over the past week.

Source: ProRealTime

Nasdaq 100 bounce fizzles

The index managed to eke out a small rally yesterday off the lows, but has struggled to push higher in early trading this morning. This has put the price back above the August low of 14,553, so if this holds buyers may attempt to wrest control and drive the index back towards 15,000. A close back below 14,550 would mark a bearish development, potentially open the way towards the June lows at 14,230.

Source: ProRealTime

CAC40 stuck below previous support

After falling just below the 7100 support zone earlier in the week, the index has managed to avoid any further steep losses for the time being. The March lows at 6900 beckon in the event of a fresh drop, while on the upside 7100 could act as resistance in the short-term now it has been broken as support. A longer-term bullish view would require a close back above 7200.

Source: ProRealTime

[MongiIG]

Nikkei 225, FTSE 100 and S&P 500 try to recover into month end

Outlook on Nikkei 225, FTSE 100 and S&P 500 as the oil price, US yields and greenback retreat from their lofty heights.

Source: Bloomberg

 Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Friday 29 September 2023 11:36

Nikkei 225 stabilizes as September draws to an end

The Nikkei 225 stabilizes into month-end despite Japan consumer morale falling to a six-month low as better-than-expected preliminary industrial production and a positive close on Wall Street aided Asian stock markets to stem their September falls. The Nikkei 225 thus managed to stay above its Thursday low at 31,665.4 which was made close to the 25 August low at 31,563.2.

Were this level to give way in October, the August low at 31,251.2 would be in focus. Immediate resistance to contend with is the 22 September low at 32,167.9, followed by the mid-September low and the 55-day simple moving average (SMA) at 32,396.5 to 32,464.9. While below this area, bearish pressure retains the upper hand.

Source: ProRealTime

FTSE 100 bounces off support into month end

The FTSE 100 is trying to build on Thursday’s Wall Street led gains following dovish comments by Federal Reserve (Fed) members Goolsbee and Barkin and better-than-expected UK revised business investment numbers. The 200-day simple moving average (SMA) at 7,650 is thus back in sight. Potential stumbling blocks above it can be seen at the 7,688 June high and also between the 7,723 July peak and the current September high at 7,747.

These highs will need to be bettered for the psychological 7,800 mark and the 8 May high at 7,817 to be back in play. Minor support sits at Wednesday’s low at 7,553. A fall through this week’s low at 7,523 would open the door to the psychological 7,500 region.

Source: ProRealTime

S&P 500 ends nine straight day fall

A retreat in the oil price, greenback and US yields amid dovish Fed talk and sharply lower revised consumer spending have helped the S&P 500 stem its nine straight day fall to 4,239 and led to a small positive close on Thursday. While this week’s low underpins, the late June to August lows at 4,328 to 4,337 will be eyed. First, though, Thursday’s high at 4,318 will need to be exceeded. Below the September low at 4,239 lies the major 4,214 to 4,187 support area which consists of the early and late May highs and the 200-day simple moving average (SMA).

Source: ProRealTime

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[MongiIG]

 

Nikkei 225, FTSE 100 and S&P 500 begin Q4 on a cautious note

Outlook on Nikkei 225, FTSE 100 and S&P 500 as the oil price, US yields and greenback remain at elevated levels.

Source: Bloomberg

 Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Monday 02 October 2023 11:37

Initial Nikkei 225 Monday rally fizzles out

The Nikkei 225 began the day on a positive footing and rose to the 55-day simple moving average (SMA) at 32,415.9 as Japan Q3 business sentiment climbed the highest in five quarters before sellers regained the upper hand and pushed the index back down towards its 31,665.4 September low. It and the 25 August low at 31,563.2 may be revisited while the 55-day SMA caps.

Were this level to give way in October, the August low at 31,251.2 would be eyed. Immediate resistance sits around the 32,000 mark and further minor resistance at the 22 September low at 32,167.9, followed by the mid-September low and the 55-day SMA at 32,396.5 to 32,415.7.

Source: ProRealTime

FTSE 100 begins Q4 below its 200-day simple moving average (SMA)

The FTSE 100 tried to stay above the 200-day simple moving average (SMA) at 7,650 on the last day of the third quarter but didn’t manage to do so and is beginning the last quarter of the year in a subdued mood. Resistance above the 200-day SMA can be spotted at Friday’s 7,675 high and the 7,688 June high.

Further potential resistance comes in between the 7,723 July peak and the September high at 7,747. These highs will need to be exceeded for the psychological 7,800 mark and the 8 May high at 7,817 to be back in the frame. Minor support sits at last Wednesday’s low at 7,553. Only a fall through last week’s low at 7,523 would open the door to the psychological 7,500 region.

Source: ProRealTime

S&P 500 mixed despite averted US government shutdown

The S&P 500 begins the fourth quarter in a cautious mood despite US legislators agreeing to a temporary solution to keep the government open for 45 more days. A rise above not only Friday’s high at 4,332 needs to occur but also the late June to August lows at 4,328 to 4,337 for the 10 July low at 4,378 to be reached. Slips should find support around Friday’s low at 4,274 ahead of the September low at 4,239. Below it lies the major 4,214 to 4,187 support zone which consists of the early and late May highs and the 200-day simple moving average (SMA).

Source: ProRealTime

[MongiIG]

Signs of strength in Nasdaq 100 but Dow and DAX struggle to make progress

Indices suffered further losses on Monday but have recovered slightly today, with the Nasdaq 100 showing the way.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Tuesday 03 October 2023 11:58

Dow struggles after tough Monday

Losses continued here despite the resolution of the US government’s funding problems. The index touched a four-month low in Monday’s session, and has shown no sign yet of forming a low. Friday’s rejection of the 200-day simple moving average (SMA) provided a fresh bearish catalyst, and for now further declines seem likely. A drop below 33,230 would mark a new bearish move and open the way to the 32,700 level that was last tested in May. A rebound above the 200-day SMA might help to suggest that a low has formed for the time being.

Source:ProRealTime

Nasdaq 100 pushes higher

The buyers emerged in this index over the previous three four sessions, with bargain-hunting helping it to outperform other major US indices on Monday. This may be a sign of risk appetite re-emerging; a close above the 100-day SMA would help to solidify this view, but in the short-term a rally all the way back above 15,400 is needed to break trendline resistance from the July highs. A reversal back below 14,700 might suggest the sellers will attempt another move to push the price below last week’s lows, when the 14,550 level was staunchly defended.

Source:ProRealTime

DAX fights to hold near support

The rebound of Thursday and Friday fizzled out on Monday, with the index returning to the 15,200 support zone. It now finds itself balanced right on support, with the March lows around 14,700/14,800 next in view in the event of further losses. Having fallen below support around 15,700 and then 15,500, the sellers remain firmly in control of the index. In the short-term, a close above 15,650 would be needed to pierce trendline resistance from the July record high.

Source:ProRealTime

[MongiIG]

Nikkei 225, FTSE 100 and S&P 500 continue to free fall

Outlook on Nikkei 225, FTSE 100 and S&P 500 amid rising US yields, a strong greenback and tight US labour market.

Source: Bloomberg

 Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Wednesday 04 October 2023 11:19

Nikkei 225 drops to near five-month low

Since last week the Nikkei 225 dropped by close to 5% as higher yields led to risk-off sentiment. The fall through the 200-day simple moving average (SMA) at 30,690.2 amid potential currency intervention by the Bank of Japan (BoJ) is worrying for the bulls with the minor psychological 30,000 mark now in focus. Below it lies the 50% retracement of this year’s up to 32% uptrend at 29,730 which represents another possible downside target. Minor resistance above the 200-day SMA at 30,690.2 sits at the 38.2% Fibonacci retracement at 30,710 and more significant resistance at the 31,251.2 August low.

Source: ProRealTime

FTSE 100 slips to one-month low

The FTSE 100’s fall through the August-to-October uptrend line and the 55-day simple moving average (SMA) at 7,528 after three straight days of declines has the late June low at 7,401 in its sights. Below it the early September low at 7,369 may also offer support. Minor resistance above the 55-day SMA can be spotted at Tuesday’s 7,546 high and at the breached two-month uptrend line, now because of inverse polarity a resistance line, at 7,565.

Source: ProRealTime

S&P 500 probes major support zone

The S&P 500 began the fourth quarter where it left of in the third, namely by declining further as the US 10-year Treasury yield rose above 4.85% and that of the 30-year bond hit the 5% mark, both at 2007 highs. Higher-than-expected job openings and the unprecedented removal of the Speaker of the House, which raises fears of paralysis in the US government, also pushed stocks lower.

The 4,217 to 4,187 key support zone, which consists of the early and late May highs and the 200-day simple moving average (SMA), is currently being tested and may hold. If not, the next lower late May low at 4,166 may also be reached. Initial resistance can be found at last week’s 4,238 low followed by Monday’s low at 4,260.

Source: ProRealTime

[MongiIG]

Dow, Nasdaq 100 and Nikkei 225 march higher

Indices have extended their rebound from last week’s lows, and enjoyed a strong session on Monday. Further gains seem likely as the positive seasonality of the fourth quarter begins to take hold.

Source: Bloomberg

 

 

 

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Tuesday 10 October 2023 11:00

Dow at one-week high

The index surged on Monday, rallying back towards the 200-day simple moving average (SMA). This comes after the gains made on Friday following the payrolls report. For the moment a low appears to be in place. Gains at the end of September faltered at the 200-day SMA and the 33,900 level, so a close above here would bolster the bullish view. From there, the 50-day SMA and then the 35,000 highs from August and September are the next targets. Trendline resistance from the July high may prevent the price reaching the latter. A failure to close above the 200-day SMA and a move back below 33,500 might signal that a lower high is in place.

Source: ProRealTime

Nasdaq 100 returns to 50-day moving average

Having spent last week defending the 14,500 level, the index has now pushed back towards the confluence of the 100- and 50-day SMAs. A close above the latter targets trendline resistance from the July highs, and then from there the 15,500 level of late August and early September comes into view. This breakout above trendline resistance would then see the price take on a further bullish aspect, and then target the highs of July at 16,000. Sellers will need a close back below 14,800 to suggest that another attempt to test support at 14,500 is in the offing.

Source: ProRealTime

Nikkei 225 continues its rebound

Last week witnessed the index rally from the 200-day SMA, and it has held its ground in trading so far this week. All eyes are now on the 31,300 zone, to see if this low from August can be breached once more, which might then allow further bullish momentum to take the price on to the 50-day SMA, and then towards 33,000. Sellers will need a reversal towards, and then a close below the 200-day SMA to provide a more bearish view. A close below last week’s low of 30,270 would reinforce this view.

Source: ProRealTime

[MongiIG]

FTSE 100, DAX 40 and S&P 500 trade within or close to key resistance

Outlook on FTSE 100, DAX 40 and S&P 500 as more Fed voting members hold dovish views.

Source: Bloomberg

 Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Wednesday 11 October 2023 11:08

FTSE 100 rallies on dovish Fed view

The FTSE 100 has seen four consecutive days of gains as more and more Fed members hold dovish views and some believe that the high US yields are having the desired restrictive effect with no more rate hikes expected to be seen this year. On Tuesday the UK blue chip index on came close to the 200-day simple moving average (SMA) at 7,650 which may act as resistance today. Above it sits the late September high at 7,675, a rise above which would engage the mid-June high at 7,688. Further up lie the July and September highs at 7,723 to 7,747. Slips should find support between the 7,562 early July high and the 7,550 11 September high.

Source: ProRealTime

DAX 40 rally is taking a breather

The DAX 40 has rallied close to its major 15,455 to 15,561 resistance area, made up of the July to mid-September lows, in line with Wall Street and Asian equity indices amid dovish Fed commentary. This resistance zone should not prove easy to overcome, though, and may thus cap on Wednesday. Slips back towards Friday’s high at 15,296 may thus ensue. Further down lies minor support at last Tuesday’s 15,259 high. Were a rise and daily chart close above the 15,561 mid-September low to be made, the 200- and 55-day simple moving averages as well as the July-to-October downtrend line at 15,658 to 15,700 would be targeted.

Source: ProRealTime

S&P 500 grapples with the 4,328 to 4,378 resistance area

The S&P 500 has entered the key 4,328 to 4,378 resistance area, consisting of the late June to August lows and late September high, which so far caps despite four Federal Reserve (Fed) voting members making dovish comments. Were a rise above Tuesday’s high at 4,386 to be seen, the 55-day simple moving average (SMA) at 4,425 would be next in line. Minor support can now be found between the 4,337 to 4,328 late June and August lows.

Source: ProRealTime

[MongiIG]

Dow & Nasdaq 100 in strong form, but CAC40 sees more muted gains

Indices continue to rally overall, but some signs of weakness have emerged the CAC40, while the Dow and Nasdaq 100 still look to have further bullish momentum behind them.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Thursday 12 October 2023 11:20

Dow edges above 200-day moving average

The impressive rebound for the Dow has carried the index back to the 200-day simple moving average (SMA). Early trading on Thursday has seen the price edge above this indicator, though a close above it eludes the bulls for the time being. Additional upside targets the mid-August low around 34,100, and from there the 50- and 100-day SMAs come into view. A reversal back below 33,500 would signal that sellers have reasserted control.

Source: ProRealTime

Nasdaq 100 reaches trendline resistance

The index has managed to surge above the 50- and 100-day SMAs in its rebound from the lows of late September. It has now reached trendline resistance from the July highs; in late August and September this resulted in a lower high being formed. A close back below 15,050 would mark a lower high in this instance and open the way to another test of the lows of September around 14,500. If the buyers can manage a close above trendline resistance, then a bullish view could emerge, with the price then targeting 15,500, the previous lower high. Above this, the July highs come into play.

Source: ProRealTime

CAC40 rally slows

Like other indices, the CAC40 has succeeded in rallying off its lows, though it remains below the 200- and 50-day SMAs. The short-lived bounce in late September ran out of momentum below 7200, so a failure to close above this area would be a bearish development. This might then result in a fresh drop towards the 7000 level and the September low around 6965. Additional gains above 7200 would target the 50-day SMA, then the 200-day SMA, and then on to trendline resistance from the late July high.

Source: ProRealTime

[MongiIG]

FTSE 100, DAX 40 and S&P 500 capped by key resistance on uptick in US inflation

Outlook on FTSE 100, DAX 40 and S&P 500 as US CPI comes in slightly higher-than-expected.

Source: Bloomberg

 

 Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Friday 13 October 2023 11:05

FTSE 100 capped by resistance

The FTSE 100 has seen six consecutive days of gains, on Thursday driven by energy and health care stocks, but has come off the 200-day simple moving average (SMA) at 7,650 as US CPI inflation came in slightly higher-than-expected and provoked a reversal lower. Further consolidation below Thursday’s high at 7,687 is expected to be seen on Friday. If a slip through Thursday’s low at 7,604 were to unfold, support between the 7,562 early July high and the 7,550 11 September high may be revisited. This week’s high at 7,687 ties in with the mid-June high at 7,688. Further up lie the July and September highs at 7,723 to 7,747.

Source: ProRealTime

DAX 40 rally stalls within resistance area

The DAX 40 rallied into its major 15,455 to 15,561 resistance area, made up of the July to mid-September lows, and even briefly rose slightly above it on Thursday to 15,575 before heading back down again on the second straight monthly upward surprise in US inflation. A drop back towards last Friday’s high at 15,296 may now ensue. Further down lies minor support at last Tuesday’s 15,259 high. Were a rise and daily chart close above this week’s 15,575 high to be made, the 200- and 55-day simple moving averages as well as the July-to-October downtrend line at 15,664 to 15,676 would be in sight.

Source: ProRealTime

S&P 500 slips back into the 4,328 to 4,378 resistance area

The S&P 500 has re-entered its 4,328 to 4,378 resistance area, made up of the late June to August lows and late September high, having briefly overcome it on Wednesday and Thursday by rising to 4,398 before coming off again as US CPI inflation came in slightly higher-than-expected at 3.7%. The index did find support around the lower end of the previous resistance area at 4,325, though. Were this level to give way, the early June high at 4,299 could be revisited. Were a rise above this week’s high at 4,398 to be seen, the 55-day simple moving average (SMA) at 4,218 would be next in line.

Source: ProRealTime

[MongiIG]

FTSE 100 continues to rise while DAX 40 and S&P 500 range trade

Outlook on FTSE 100, DAX 40 and S&P 500 amid ongoing Middle East tensions.

Source: Bloomberg

 Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Wednesday 18 October 2023 10:51

FTSE 100 trades in near one-month highs

The FTSE 100, which continues to benefit from the higher oil price, is approaching the July and September highs at 7,723 to 7,747 which are expected to act as resistance, at least in the short-term. The rise is seen despite UK inflation for September remaining unchanged at 6.7% versus expectations of a slight decrease to 6.6%, as softer increases in food and furniture prices were offset by a rebound in transport costs. Slips should find support between the October accelerated uptrend line and the 200-day simple moving average (SMA) at 7,650 to 7,638. While Monday’s low at 7,584 underpins, the current uptrend will remain intact.

Source: ProRealTime

DAX 40 still hovers above Monday’s 15,104 low

The DAX 40, which on Monday dipped down to 15,104 amid heightened Middle East tensions, continues to hover above this low amid cautious trading. Provided that the 15,104 low continues to underpin on a daily chart closing basis, Tuesday’s high at 15,305 could be revisited. Above it lies the major 15,455 to 15,575 resistance area which encompasses the July to mid-September lows and last week’s high. A slide through 15,104 would probably lead to the early October low at 14,944 being back on the map.

Source: ProRealTime

S&P 500 is contained by the 4,311 to 4,398 resistance area

The S&P 500 continues to trade within its 4,311 to 4,398 resistance area, made up of the late June to August lows, late September high and mid-October high and low, as Q3 earnings season so far seems to surprise to the upside. A rise above 4,398 and the 55-day simple moving average (SMA) at 4,407 would eye the 4,430 early September low. Good support can be spotted between the 4,337 to 4,311 mid-August to Friday’s low.

Source: ProRealTime

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Dow, Nasdaq 100 and Nikkei 225 come under fresh pressure

Risk aversion has gripped indices, prompting further losses for global stock markets.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Thursday 19 October 2023 11:32

Dow back below 200-day MA

The volatile trading of the past two weeks continued on Wednesday. The index dropped back below the 200-day simple moving average (SMA), after testing the 34,000 level on Tuesday. A close below 33,400 might signal that the bounce from early October has been reversed, and a move back to October’s lows at 32,800 might then begin. The May lows around 32,730 then come into view. Buyers need a close back above 33,800 and then above the 200-day SMA to indicate a revived rally is in progress.

Source: ProRealTime

Nasdaq 100 fall back again

It has been a week since the index hit trendline resistance from the July highs, and in that time the price has slipped back below the 100- and 50-day SMAs. While the index is still some 400 points higher from the early October low, upward momentum has firmly stalled. Additional declines now target the 14,500 October low. A close below 14,400 would mark a bearish development and potentially open the way to the 200-day SMA. Bulls will need to see a close back above 15,150 to indicate that another attempt to break trendline resistance is in play.

Source: ProRealTime

Nikkei 225 heads back towards 200-day MA

Another test of the 200-day SMA could be in prospect here, as fresh declines take the index further away from trendline resistance. The past week has seen upward momentum fizzle out, as trendline resistance from the September high and the 50- and 100-day SMAs hold back progress. Now we wait to see if the bulls can mount a defence of the 200-day SMA as they did at the end of September. A close back above 32,200 would be needed to suggest that the bullish view has reasserted itself. Below the 200-day SMA, the price targets the September low around 32,300.

Source: ProRealTime

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FTSE 100, DAX 40 and Russell 2000 drop on risk-off sentiment

Outlook on FTSE 100, DAX 40 and Russell 2000 amid heightened Middle East tensions and hawkish Fed comments.

Source: Bloomberg

 Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Friday 20 October 2023 11:03

FTSE 100 falls out of bed on hawkish Fed

The FTSE 100 once again failed in the 7,700 region and dropped by over 2.5% over the past couple of days as the US Federal Reserve (Fed) re-iterates its hawkish stance and US bond yields surge to 2006 and 2007 highs. The FTSE 100 is in the process of slipping to the May and early August lows at 7,438 to 7,433. Below this area lies the 7,401 late June low and further down the key September and October lows at 7,384 to 7,369. Minor resistance can be seen along the 55-day simple moving average (SMA) at 7,512 and at the 7,524 early September high.

Source: ProRealTime

DAX 40 drops to seven-month low

The DAX 40’s fall through its early October 14,944 low as investors brace themselves for a ‘rates higher for longer’ period well into the second half of next year. It puts the late March low at 14,801 on the cards. Below it lies the March trough at 14,459. Minor resistance can now be found between the 6 October low at 15,034 and the accelerated downtrend line at 15,140.

Source: ProRealTime

Russell 2000 re-enters major 2022-to-2023 support zone

The Russell 2000, the great underperformer of US stock indices with a near 3% negative performance year-to-date, has slid back to its major December 2022 to May support zone at 1,700 to 1,690. It did so amid hawkish comments by the Fed Chair Jerome Powell who said that inflation remains too high and that it needs to be brought down, leading the 10-year US Treasury yield to hit the 5% level, last seen in 2007. Were a drop through and daily chart close below the 1,690 March low to ensue, the June-to-October 2022 lows at 1,639 to 1,631 would be back in sight. Minor resistance above the 1,707 early October low sits at the 1,713 mid-October low.

Source: ProRealTime

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FTSE 100, DAX and Dow all edge higher after recent heavy losses

Indices suffered heavy selling last week, but have managed to nudge their way up in cautious early trading.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Monday 23 October 2023 11:02

FTSE 100 back to 7400

Friday witnessed the index close below trendline support from the August low, and below the early October low. Further losses now beckon towards 7300 and then down to 7215, the low from mid-August. Sellers have been firmly in control here over the previous three sessions, after the index fell back from the 7700 zone for the third time since the second half of July. Recent weakness has seen some buying emerge around 7370, with a close back above 7400 providing some hope that a short-term low has formed.

Source:ProRealTime

DAX sits at seven-month lows

The losses of the past two weeks have finally seen the index head back towards its March lows, wiping out all the gains made since the banking crisis. The past two months has seen the index reach new lower highs and lower lows. This leaves the near-term bearish view intact. In the short-term, the index would need to rebound above 15,500 to suggest that a low has formed and that a new attempt to clear post-July trendline resistance is underway.

Source:ProRealTime

Dow losses pause for now

The second half of last week witnessed the index lose 1000 points, and a move back to the early October low seems likely. Below this, the May low around 32,500 comes into view as possible support. Further declines then see the index target the March lows below 32,500. In the short-term, a close back above 33,500 might suggest that a low has been formed for the time being.

Source:ProRealTime

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Nasdaq 100 & S&P 500 hold support, while Nikkei 225 remains above the 200-day moving average

The selling has paused in indices for now, with the Nasdaq 100 and S&P 500 holding their September lows and the Nikkei 225 avoiding a close below the 200-day moving average.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Tuesday 24 October 2023 11:41

Nasdaq 100 holds key support

The index rallied off the 14,500 level for the second time in a month, in an echo of September’s price action. Now the bulls need to get the price back above 14,800 on a closing basis – Monday’s price action witnessed a push to this level, but momentum then faded. For the moment, the bearish case is still in the ascendant in the short-term, but a bigger pullback will require a close below 14,400, putting the price below the lows of the past month.

Source: ProRealTime

Nikkei 225 stays above 200-day MA

Once more the 200-day SMA appears to be acting to stem losses, with a push below this indicator finding buyers on Monday and Tuesday. Now the buyers must push on, with a close above 31,300 helping to solidify a low and allowing a move back towards the 32,500 level to be contemplated. A close back below 30,700 would suggest that the 200-day SMA has been breached and a near-term bearish view prevails.

Source: ProRealTime

S&P 500 holds September lows

The index was unable to get back above the 200-day SMA on Monday, but for the moment the 4200 lows from September continue to hold. In the event of further downside, the 4160 area, which marked the highs from February and March, would come into view. Below this the 4070 might be the next area of support. A close back above the 200-day SMA might yet provide hope that a low has formed, which could then see the price test short-term trendline resistance from the early September high.

Source: ProRealTime

[MongiIG]

FTSE 100, Dax and Dow rebound from recent lows

Indices staged a recovery on Tuesday, but morning trading so far has been cautious.

Source: Bloomberg

 

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Wednesday 25 October 2023 

FTSE 100 testing 7400

The index managed to rebound on Tuesday, recovering some losses. For a low to be formed, we would need to see additional gains towards 7450, which might then bolster a near-term bullish view and open the way towards the 200-day SMA. A close back below 7310 would negate this view.

Source: ProRealTime

Dax rebounds from low

Tuesday saw the index make some headway, building on Monday’s dip below and then recovery above 14,700. While this has halted the selling for now, further gains back above 15,000 would be needed to suggest that a low is in. This might then allow the index to target trendline resistance from the August highs, as well as the 50-day SMA. A close below 14,750 might cancel out this bullish view for the time being.

Source: ProRealTime

Dow makes headway

Like other indices, the Dow staged a recovery on Tuesday, but it is not yet certain that a low has been formed. Any continued recovery targets the 200-day SMA and then the October highs around 34,000. A close above 34,100 might signal that a broader rally was underway. A close below the September lows would signal that the sellers have regained control.

Source: ProRealTime

[MongiIG]

FTSE 100, DAX 40 and S&P 500 try to kick off week on a stronger footing

Outlook on FTSE 100, DAX 40 and S&P 500 amid elevated Middle East tensions, volatility and a plethora of key interest rate decisions.

Source: Bloomberg

 Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Monday 30 October 2023 12:05

FTSE 100 tries to stabilise

The FTSE 100 is trying to regain some of last week’s sharp losses which were due to risk-off sentiment surrounding the Middle East and the ‘rates higher for longer’ outlook. The decline took it to a two-month low at 7,258 with the early September and early October lows at 7,369 to 7,384 being back in sight for Monday’s recovery rally. This area might act as resistance, though. If not, Wednesday’s high at 7,430 could be back in the frame. If overcome on a daily chart closing basis, a medium-term bullish reversal in the seasonally favourable period until year-end could be in the making. Major support below Friday’s 7,258 low can be spotted between the 7,228 to 7,204 March-to-August lows.

Source: ProRealTime

DAX 40 tries to bounce off its seven-month low

The DAX 40’s fall to 14,589 on Friday has been followed by a slightly more bullish sentiment on Monday morning with the index seen breaking through its October downtrend line at 14,756 as investors await key German preliminary Q3 GDP and inflation data and the Eurozone business climate report. A rise above Friday’s 14,825 high would put last week’s high at 14,945 back on the plate. If bettered on a daily chart closing basis, a medium-term bullish reversal may occur into the end of the year. Potential slips through Friday’s 14,589 low would open the way for the March trough at 14,459, though.

Source: ProRealTime

S&P 500 futures point to higher open after several dismal weeks

Last week the S&P 500 slipped to its 4,104 late May low as investors worried about an escalation in the Middle East. This week all eyes are on the US Federal Reserve’s Federal Open Market Committee (FOMC) meeting in the middle of the week and US employment data. The S&P 500 may rise to its accelerated downtrend line at 4,162 above which the early October low at 4,200 may also act as resistance. For any significant bullish reversal to gain traction not only the 200-day simple moving average (SMA) at 4,251 would need to be exceeded but also Tuesday’s high at 4,266, the last reaction high on the daily candlestick chart. A fall through 4,104 could lead to the next lower May low at 4,047 being back in sight, however.

Source: ProRealTime

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FTSE 100, DAX and S&P 500 sitting at two-week highs

Indices have had a strong week, and have made impressive gains, though caution persists ahead of today’s payrolls reading.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Friday 03 November 2023 12:42

FTSE 100 in bullish short-term form

The rally off the 7300 continued on Thursday, with impressive gains for the index that have resulted in a move back through 7400. This now leaves the index on the cusp of a bullish MACD crossover, and could now see the price on course to test the 200-day SMA, and then on to 7700. A reversal back below 7320 would negate this view.

Source: ProRealTime

DAX at two-week high

The index made big gains for a second consecutive day, and with a fresh bullish MACD crossover the buyers appear to be firmly in charge. The next stop is trendline resistance from the August record high, and then on the declining 50-day SMA, which the index has not challenged since early September. A failure to break trendline resistance might dent the bullish view, though a close below 15,000 would be needed to give a firmer bearish outlook. This would then put the lows of October back into view.

Source: ProRealTime

S&P 500 in strong form ahead of non-farm payrolls

The index has recouped a significant amount of the losses suffered in October, and like the Dax is now barrelling towards trendline resistance and then the 50-day SMA. Beyond these lies the 4392 peak from early October, and a close above here would solidify the bullish view. A reversal back below the 200-day SMA would signal that the sellers have reasserted control and that a move back towards 4100 could be underway.

Source: ProRealTime

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FTSE 100, DAX 40 and S&P 500 lose upside momentum following last week’s strong gains

Outlook on FTSE 100, DAX 40 and S&P 500 as softer US economic data, a subdued Non-Farm Payrolls and dovish Fed statements led to risk-on sentiment.

Source: Bloomberg

 

 Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Monday 06 November 2023 12:29

FTSE 100 hovers above support

The FTSE 100 ended last week on a high and managed to rally to 7,484, close to the 55-day simple moving average (SMA) at 7,497, following softer US employment data, rapidly falling yields and rising US indices. The index begins this week around the 7,401 June low and the early September and early October lows at 7,384 to 7,369 which offer minor support. While it holds, last week’s high at 7,484 may be revisited, together with the 55-day simple moving average at 7,497 and the early September high at 7,524. If overcome in the course of this week, the 200-day simple moving average (SMA) at 7,621 would be next in line. Below 7,384 lies the October low at 7,258 which was made close to the 7,228 to 7,204 March-to-August lows and as such major support zone.

Source: ProRealTime

DAX 40 loses upside momentum ahead of resistance

The DAX 40’s rally from its 14,589 October low has been followed by one of this year’s strongest weekly rallies amid a dovish Federal Reserve (Fed) outlook and softer US employment data. A rise above Friday’s 15,368 high will put the 55-day simple moving average (SMA) and the July-to-November downtrend line at 15,386 to 15,420 on the map. Slightly above it sits major resistance between the 15,455 to 15,575 July-to-mid-September lows and the mid-October high. Slips should find support around the 15,104 mid-October low below which lies the minor psychological 15,000 mark and the early October low at 14,944.

Source: ProRealTime

S&P 500 futures point to higher open after several dismal weeks

Last week the S&P 500 saw its strongest weekly year-to-date gain thanks to softer economic data, and a subdued non-farm payroll report. These led market participants to believe that the Fed has ended its rate hike cycle and that the US economy remains on track for a soft landing. The next upside target is the October high at 4,398 which needs to be exceeded on a daily chart closing basis for a technical bottoming formation to be confirmed. If so, an advance towards the September peak at 4,540 may be seen into year-end. Minor support below the 55-day simple moving average (SMA) at 4,354 can be spotted around the 4,337 August low and the breached September-to-November downtrend line, now because of inverse polarity a support line, at 4,315 as well as at the 4,311 mid-October low.

Source: ProRealTime

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FTSE 100, DAX 40 and S&P 500 consolidate as they await further news

Outlook on FTSE 100, DAX 40 and S&P 500 ahead of speeches by Fed Chair Jerome Powell today and tomorrow.

Source: Bloomberg

 Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Wednesday 08 November 2023 12:33

FTSE 100 weighs on minor support

The FTSE 100 continues to slide on some disappointing earnings. The index is in the process of testing the early September and early October lows at 7,384 to 7,369 and may drop towards the October low at 7,258 if these levels were to give way. The 7,258 low was made close to the 7,228 to 7,204 March-to-August lows which represents significant support. Above Wednesday’s intraday high at 7,408 lies minor resistance at Tuesday’s 7,432 high and the 25 October high at 7,430. Further up sits last week’s high at 7,484 which, together with the 55-day simple moving average at 7,501, would need to be overcome for the early September high at 7,524 to be back in the frame.

Source: ProRealTime

DAX 40 consolidation is ongoing

The DAX 40’s rally from its 14,589 October low took it to Friday’s 15,268 high before consolidating this week. In case of a fall through Tuesday’s low at 15,067 the minor psychological 15,000 mark and the early October low at 14,944 may be revisited. For the bull run to continue, Tuesday’s high at 15,194 would need to be exceeded in which case last week’s high at 15,268 would be back in focus. Further up beckon the 55-day simple moving average (SMA) and the July-to-November downtrend line at 15,363 to 15,390. Slightly above this area sits major resistance between the 15,455 to 15,575 July-to-mid-September lows and the mid-October high.

Source: ProRealTime

S&P 500 nears mid-October high at 4,398

The sharp rally in the S&P 500 is losing upside momentum amid high US treasury yields and hawkish comments by US Federal Reserve (Fed) members and as it approaches its mid-October high at 4,398 around which it may short-term consolidate. If not, the early September low at 4,430 would be eyed next. Minor support can be seen along the 55-day simple moving average (SMA) at 4,352 and at Monday’s 4,348 low. Further minor support sits at the 4,337 August trough.

Source: ProRealTime

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Dow stalls at trendline resistance, but Nasdaq 100 edges up and Nikkei 225 rallies

After pulling back in recent sessions the Nikkei 225 has moved higher, while the Dow has reached trendline resistance and the Nasdaq 100 makes some tentative gains.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Thursday 09 November 2023 12:01

Dow returns to trendline resistance

The index has seen its momentum fade after the huge gains of the past week, though it continues to hold above the 200-day simple moving average (SMA). Wednesday saw the index touch trendline resistance from the July highs, for the first time since early September. A push above this line would be a clear bullish development, and open the way towards the highs of early September towards 35,000. For the moment there is no sign of any downside momentum, but a close below the 200-day SMA might signal that some fresh short-term weakness has begun.

Source: ProRealTime

Nasdaq 100 continues to tiptoe higher

This index has been able to push above trendline resistance, moving outside the descending channel in place since the end of July. It finds itself back at the early October highs at 15,330, and now need a close above this level to break the previous lower high. From there, the 15,600 area from early September comes into view. A reversal back below 15,000 puts the index back inside the descending channel and reinforces the bearish short-term view.

Source: ProRealTime

Nikkei 225 bounces off 100-day moving average

After weakening over the past four sessions, the index has seen a revival. The price briefly moved below the 100-day SMA yesterday, but avoided a close below this indicator, with it now acting as support as opposed to resistance as it was in early October. This could now see the index push on towards 33,000 and trendline resistance from the 2023 high. Above this comes the September highs around 33,450. Sellers will need a reversal back below 32,000 to suggest that a new leg lower could be underway.

Source: ProRealTime

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FTSE 100, DAX 40 and Nasdaq 100 remain overall bid ahead of Tuesday’s US inflation reading

Outlook on FTSE 100, DAX 40 and Nasdaq 100 ahead of Tuesday’s US CPI data.

Source: Bloomberg

 

 Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Monday 13 November 2023 11:35

FTSE 100 tries to begin week on a positive footing

The FTSE 100 has come off Thursday’s 7,466 high amid hawkish comments by the US Federal Reserve (Fed) Chair Jerome Powell and as the British economy stalled in the third quarter and slid to 7,320 on Friday before recovering. A rise above Friday’s 7,422 high would engage the one-month resistance line at 7,434 ahead of last week’s high at 7,466 and the early November high and 55-day simple moving average at 7,484 to 7,502. If overcome, the 200-day simple moving average (SMA) at 7,610 would be back in the picture. Minor support below Monday’s intraday low at 7,359 is seen at Friday’s 7,320 low. In case of it being slipped through, a fall towards the October low at 7,258 may ensue. The 7,258 low was made close to the 7,228 to 7,204 March-to-August lows which represents significant support.

Source: ProRealTime

DAX 40 remains immediately bid while above 15,171

The DAX 40’s rally from its 14,589 October low took it to last week’s high at 15,366 before slipping to Friday’s low at 15,171. While remaining above this level, further upside should be in store with the July-to-November downtrend line and 55-day simple moving average (SMA) at 15,342 representing the first upside target ahead of the 15,366 high. Were it to be exceeded, the 15,455 to 15,575 July-to-mid-September lows and the mid-October high would represent major resistance. Support below the October-to-November uptrend line at 15,227 and Friday’s 15,171 low can be found at last week’s 15,067 low. Further down lie the minor psychological 15,000 mark and the early October low at 14,944.

Source: ProRealTime

Nasdaq 100 grapples with resistance

The Nasdaq 100 surged ahead on Friday and reached levels last traded in September between the 15,520 to 15,628 early to mid-September highs by rising to 15,543. Moody’s downgrade on the US credit rating from “stable” to “negative” while affirming its Aaa rating - the highest investment grade - put a dampener on US stock indices such as the Nasdaq 100 which is trading slightly lower in pre-open trading and ahead of Tuesday’s inflation data. Support comes in around the 15,339 October peak. While the next lower 15,139 Thursday low underpins, the steep upside momentum from the last couple of weeks remains in play.

Source: ProRealTime

[MongiIG]

Dow, Nikkei 225 and CAC 40 gains slow ahead of US inflation data

Outlook on Brent crude oil, US natural gas and Chicago wheat following OPEC monthly report and shifting weather patterns.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Tuesday 14 November 2023 11:54

Dow breaks trendline resistance

The price continued to gain on Monday, moving above trendline resistance from the August highs. This now clears the way for a possible test of the September lower high around 35,000, and then beyond this on towards the August highs at 35,660. After consolidating over the past week around 34,000, the buyers appear to be in charge once again. It would need a reversal back below trendline resistance and below the 200-day simple moving average (SMA) to suggest a new leg lower could begin.

Source: ProRealTime

Nikkei 225 consolidates around six-week high

Shallow trendline resistance from the June highs appears to be the index’s next target. Having found support last week around the 100-day SMA the index has now resumed its move higher, moving above the high from the beginning of November and fighting off a revival of selling pressure on Monday. After trendline resistance, the index targets 33,500, the September high, and then on to 34,000.

Source: ProRealTime

CAC40 back above 50-day moving average

The recovery goes on here, with the index once more moving above the 50-day SMA. The index is now moving through the lows of the summer around 7100, and the next target becomes the 7170 zone which acted as resistance in late September and early October. A failure to close above 7100 and then a drop back below 7000 might signal that a lower high is in place.

Source: ProRealTime

[MongiIG]

FTSE 100, DAX 40 and S&P 500 extend gains on softer US and UK inflation

Outlook on FTSE 100, DAX 40 and S&P 500 following weaker-than-expected US and UK inflation.

Source: Bloomberg

 Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Wednesday 15 November 2023 11:11

FTSE 100 rallies on softer US and UK inflation

The FTSE 100 is on track for its third consecutive day of gains on softer US and UK inflation with the early November high at 7,484 being retested. Further up beckons the 55-day simple moving average at 7,503. If exceeded, the 200-day simple moving average (SMA) at 7,606 would be back in the frame. Support below Wednesday’s 7,430 low can be found between the breached one-month tentative downtrend line at 7,406 and the early September and early October lows at 7,384 to 7,369.

Source: ProRealTime

DAX 40 reaches 200-day simple moving average

The DAX 40’s rally from its 14,589 October low accelerated to the upside with the index rallying by 1.76% on Tuesday on softer US consumer price inflation (CPI) and as the German ZEW economic sentiment came in much stronger than expected. The index is now flirting with the 200-day simple moving average at 15,656 which may short-term cap. Once bettered on a daily chart closing basis, the late August and September peaks at 15,992 to 16,044 should enter the fray. Potential slips should find support between the early October high at 15,575 and the mid-September low at 15,561. Further minor support sits at the late September 15,518 high.

Source: ProRealTime

S&P 500 nears the September peak at 4,540

The sharp rally in the S&P 500 has gained even more upside momentum amid softer-than-expected US inflation data and as 10-year US treasury yields slid below the 4.50% mark. The early and mid-September highs at 4,516 to 4,540 represent the next upside targets ahead of the 4,607 July high. Potential slips may find support around the 11 September high at 4,491 and further down around the 24 August high at 4,474.

Source: ProRealTime