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Equity markets are again on the back foot, this time after US bourses turned south on news of the slowest US GDP growth in 4 quarters (8-quarter low), even if should help keep the Fed rate-hike wolf from the door and sent the USD to 8-month lows benefiting commodities and their miners. While markets want loose monetary policy to stick around to fuel risk assets, they also want evidence of it fostering at least some growth/recovery. How greedy can you get?
And the sell-off was only exacerbated after major activist investor Carl Icahn emptied his Apple cart based on worries over China – the stock is after all considered a barometer for global growth and innovation (stagnating?). Once again no surprise to see Germany’s DAX underperforming. Not so much on company-specific news, rather persistent EUR strength (from that opposing weak USD) which stymies the equities of the industrial nation’s big exporters.
UK 100 bounced off our bearish watch level 6255 (see morning report). Can we regain 6300 before weekend? DAX30 off its recent key 10115 lows but yet to challange 6-day downtrend. Wall Street/Dow Jones futures in a tight range 17800-17865. Bearish flag forming? Gold found resistance at March highs $1280 after rallying on weak USD and less risk appetite.
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UK 100 found support again around 6260 which bodes well for a bounce into the weekend towards Weds/Thurs 6340 highs. Holding well above 6220 ceiling of March’s 6-week chanel following yesterday’s bounce. Uptrend from April lows still valid.
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Possible support
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Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
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DAX still trending down from last week’s 10530 highs. However, yesterday’s bounce from 10120 could help towards support and a breakout to the upside to keep the Feb uptrend alive.
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
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The Dow Jones has been trading a very tight range since late last night while the index decides on its next move. Could that be a bearish flag pattern forming, with downside to 17650?
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
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Gold benefiting from reduced appetite for risk assets. Weak US GDP reducing the chances of a US rate hike any time soon also delivered another welcome bout of USD weakness which makes dollar-denominated cheaper. Breakout to continue 2016 uptrend or retrace towards rising support?
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
Click here for help with Support & Resistance Click here for help with technicals
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