Jump to content

DAX 40 Hit by Nasdaq 100 Slump, German IFO Warns of Growing Pessimism


Recommended Posts

NASDAQ 100 AND DAX 40 PRICES AND CHARTS

  • Nasdaq 100 falls 2.5% overnight, opens lower in Europe.
  • DAX 40 in the red with the latest IFO assessment adding to economic pessimism.
DAX Expands To 40 Members. Which Are The New Companies? | Eightcap

The DAX 40 is trading the best part of 1% lower in early European trade, hampered by heavy losses in the NASDAQ 100. The top 10 constituents of the NASDAQ 100, by market weighting, all registered hefty losses last night, sending the index down by nearly 2.5%. The tech index is currently down another 0.75% in Europe.

DAX 40 Hit by Nasdaq 100 Slump, German IFO Warns of Growing Pessimism

While the Nasdaq chart remains positive for now on a longer time frame, with a multi-month set of higher highs and higher lows in place, a break below the 15,500 area of prior support may see short-term losses deepen as we head into the end of the year. Traders should also be aware that today is a quarterly ‘quadruple witching’ Friday when stock index futures, stock index options, stock options, and single stock futures expire simultaneously. This is likely to lead to volatile swings today.

NASDAQ 100 DAILY PRICE CHART – DECEMBER 17, 2021

DAX 40 Hit by Nasdaq 100 Slump, German IFO Warns of Growing Pessimism

The latest German IFO release (December) warns that ‘the deteriorating pandemic situation is hitting consumer-related service providers and retailers hard’. The IFO business climate index fell to 94.7 from 96.6 in November as ‘companies assess their current business situation as less positive’ while pessimism regarding the first half of 2022 also increased. The IFO Institute ended, ‘the German economy isn’t getting any presents this year’.

DAX 40 Hit by Nasdaq 100 Slump, German IFO Warns of Growing Pessimism

Both the Nasdaq sell-off and the pessimistic IFO release are weighing on the DAX 40 with the German bourse down 0.80% this morning. The Dax is being led lower by the 20-day simple moving average and now trades below both the 50- and 200-day smas, adding to the negative outlook.

DAX 40 DAILY PRICE CHART – DECEMBER 17, 2021

DAX 40 Hit by Nasdaq 100 Slump, German IFO Warns of Growing Pessimism

How to Short Sell a Stock When Trading Falling Markets

What is your view on Equities – bullish or bearish?

 

By Nick Cawley, Strategist, 17th December 2021. DailyFX

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Bitcoin's rally is fueling gains across the market. Here are 3 altcoins with breakout potential:   Fetch.ai (FET): Bullish triangle pattern hints at a surge to $3.48 or even $5 by month's end. Floki (FLOKI): Recent breakout suggests a climb to $0.00045, capitalizing on meme coin momentum. **** (****): Inverted head & shoulders pattern forming, potentially driving price to $0.000071.   Could these be the next big crypto moonshots, or are they headed for a fall? Read the full article here for a more detailed analysis of each altcoin, including charts and technical indicators: https://coinpedia.org/price-analysis/memecoins-for-3x-profits-by-the-end-of-may/
    • Bitcoin (BTC) is breaking out, surging nearly 10% in a week and reclaiming the $67,000 level. This bullish trend has ignited questions about whether a new all-time high, or even the psychological barrier of $100,000, is within reach. Key Points:   Post-Halving Rally Echo: The current surge resembles past post-halving rallies, where Bitcoin's price historically jumps after its block reward gets reduced. This scarcity could be driving the current upswing.   Technical Indicators Support Bullish Outlook: Daily charts hint at a potential breakout from a resistance trendline, signifying the end of a corrective phase. Additionally, bullish signals emerge from technical indicators like VI lines and ADX. Fibonacci Levels Suggest Six-Figure Target: Based on Fibonacci levels, a significant price increase is on the table. If the momentum holds, a moonshot to $100,000 this year seems achievable. However, some analysts predict a more conservative target of $77,842 by Q2 2024.   AI Predicts Bullish Q2, But How Bullish?:  The analysis incorporates predictions from ChatGPT. While many expected a bullish forecast, ChatGPT surprised with a potential rally to a staggering $87,613 by the end of June! Is Bitcoin on the cusp of a historic bull run, or is this just a temporary spike?   Read the full article here for a deeper dive into the technical analysis, expert opinions, and a closer look at the AI's prediction:  https://coinpedia.org/price-analysis/chatgpt-predicts-how-high-can-bitcoin-price-rally-in-q2-2024/    
    • Pepe, the meme coin, has dropped 12% after reaching record highs earlier this week. This has investors wondering if it's a good time to buy. Why Did Pepe Surge? The Pepe price jump was linked to the return of an online personality known as "Roaring Kitty," who was a key figure in the meme stock craze of 2021. This triggered excitement around Pepe, similar to what happened with meme stocks back then. Is Now the Time to Buy Pepe? Experts say it might be a bit early. While the price has dropped, it's still significantly higher than usual. Instead of buying now, investors might want to wait for a retest of a specific price point (around $0.00000920) which could offer better buying opportunities. Why Are Some Investors Still Bullish on Pepe? Despite the recent drop, many believe Pepe has room to grow. Here's why: Popularity: Pepe is gaining popularity, which could drive the price up. Market Cap: Compared to other meme coins like Dogecoin and Shiba Inu, Pepe's market cap is still relatively low. This means there's potential for significant growth.  
×
×
  • Create New...
us