FTSE 100, DAX and S&P 500 all rally from Friday low
Friday’s late surge has continued today, as indices stage a turnaround from last week’s selling.
FTSE 100 rockets from last week’s low
After the sell-off comes the bounce, but for how long? The FTSE 100 has gained almost 5% from Friday’s lows, but this only puts a small dent in the losses suffered.
Every rally has to begin somewhere, and with the price back above the December 2018 low at 6530, we may see some bullish momentum return. Last week saw the index remain firmly below the 50-hour simple moving average (SMA) at 6695 until Friday, and for now the price is holding above this. If it can clear previous lower highs at 6930 and 7040 a more bullish view may emerge.
DAX finally finds support
Here the 11,700 level has acted as support, with the DAX having spent Friday furiously building a base above this level.
Like the FTSE 100, the DAX has also managed to move back above the 50-hour SMA (12,108), something that eluded it all last week. Lower highs at 12,496 and then 12,600 are coming into view on the upside, but the real tell for now will be if the price manages to create a higher low, helping to provide a firmer foundation for any bounce.
S&P 500 surges from Friday low
After one of the worst weeks in its history, the S&P 500 managed to bounce on Friday and has pushed higher so far today.
This only takes back some of the ground lost since 20 February, and it could easily continue to fall, but at least now we have a support level and a low to work with. Further intraday higher highs and higher lows will signal the creation of a short-term rally, with 3070 an initial target. A possible bullish stochastic crossover on the daily chart will be viewed as another welcome signal for the bulls.
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