​FTSE 100, DAX 40 remain bid while Nasdaq 100 continues to slide

​​​FTSE 100 rallies to 10-month high within key resistance zone

The FTSE 100, the best performing major Western equity index in 2022 which managed to end last year on a slightly positive note, now trades in 10-month highs as positive risk sentiment prevails.

​The index is currently probing its major 2022 resistance zone at 7,649 to 7,690, consisting of the February-to-May 2022 as well as the January 2020 highs. This resistance area may thus cap in the short-term, though. If not, the July 2019 high at 7,730 would be next in line. ​

Intraday support is to be found around the 7,618 to 7,617 November and December highs and further support around the 7,577 August peak.

​DAX 40 rally loses upside momentum as German factory orders plunge ​

The DAX 40’s strong early January rally is beginning to lose upside momentum as German factory orders slumped 5.3% month-on-month in November versus a downwardly revised 0.6% in October and worse than a forecast 0.5% drop.

​German retail sales jumped 1.1% month-on-month in November, though, compared to a 2.8% drop in October and a forecast of a 1.0% rise. ​

Resistance can be spotted around the 14,606 early December high and further up at the 14,677 mid-December peak whereas minor support below Thursday’s low at 14,402 is to be seen at the end of November low at 14,325.

​Key support sits at 14,129 to 14,125, made up of the mid-November and early December lows and the 22 December high.

​Nasdaq 100 remains under pressure ahead of US NFP data ​

The Nasdaq 100 remains in the doldrums and continues to slide ahead of Friday’s Non-Farm Payroll data coming after a strong private-sector ADP report yesterday and ahead of next week’s US earnings season. ​

The index remains within its one-month downtrend from its 12,258 December peak, with lower highs and lower lows being visible on the daily chart, and gradually slips towards the November-to-December 10,670 to 10,603 lows which represent key support. ​If fallen through, the October trough at 10,433 would be back in the picture.

​For a bullish reversal to become a possibility, the index would in the first instance need to rise above its early January high at 11,096 and then ideally also above the 21 December high at 11,287 on a daily chart closing basis.

​Immediate resistance can be spotted at Thursday's high at 10,962.