FTSE 100, Dax and S&P 500 mixed in early trading
The gains in indices have stalled although some recovery has been seen early on in Wednesday’s session.
FTSE 100 struggles after rally
The FTSE 100 has seen a reversal from Monday’s highs, continuing to move lower and taking out Tuesday’s low in early trading. Further declines target the 5800 support zone that has held twice already this month, while below this we look to 5665. A recovery above 5900 is needed to begin to reverse this view.
Dax stalls at 50-day SMA
The DAX rally from Friday’s low stalled at the 50-day SMA (12,908), and now the price has begun to reverse. If this is a lower high then further declines target 12,340, and then down to the 200-day SMA at 12,148. A recovery above 12,908 is required if the bulls are to regain control of the situation.
S&P 500 edges back after debate
For S&P 500 too the 50-day SMA has acted as resistance with the rally off last week’s low running out of steam for now. It is still comfortably above last week’s low and also above Friday’s high, so we may yet see a recovery from the current oversold intraday levels. A move back below 3250 would certainly hand the advantage to the sellers and bring another test of 3200 into view.
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