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Markets are mixed this morning after a broadly higher close across the board yesterday. The S&P 500 and Dow Jones both registered new all-time closing highs. The Fed’s Kocherlakota reiterated that the Fed needs to show more resolve in meeting its inflation target and should do whatever it takes, whilst the ECB’s Praet said ECB staff has full freedom in preparing additional stimulus. The BoE’s McCafferty said when rate rises come they will be very slow and peak lower than in the past. Traders will have their eyes on the latest minutes from the latest BoE and US Fed meetings.
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The UK’s UK 100 is trading around 6700 this morning which was a key level we highlighted yesterday. A brief break below this morning was not sustained after support was found at the 50 day moving average. 6700 will again be a technically import level today with plenty of support to the downside whilst resistance may come in around yesterdays high of 6730. The RSI, however, has begun to pick up pace in its decline.
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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Germany’s DAX did as was expected yesterday after we highlighted a bullish flag pole formation and suggested we could see 9500. This level was not quite hit although the DAX did trade as high as 9490. Overnight saw the 50 day moving average cross above the 200 day moving average, although the RSI has now broken back out of oversold territory and is now in decline.
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
US Dow Jones is still trading in its 1 week range, although it did break above the channel briefly towards the end of the trading session yesterday, registering a new all-time high. Overnight we saw the 50 day moving average cross above the 100 day moving average with potential support coming around the 50 day moving average whilst resistance could again be felt at 17700.
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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