FTSE 100 steady, as DAX and S&P 500 recover from Tuesday lows
The DAX is bouncing after steep losses yesterday, while the FTSE 100 continues to attempt to hold above 7000 and the S&P 500 aims to resume its overall move higher.
FTSE 100
The FTSE 100's drop yesterday has been countered by fresh buying that stymies the developing bearish view and puts the buyers back in charge. A further move above 7000 that then clears 7040 would see the index at a new higher high and revive the uptrend. Sellers need to rediscover yesterday’s strength and push the price back below 6910 to put some life back in the short-term bearish view.
DAX
Tuesday’s sharp drop took the price back to the 50-day SMA (currently 14,848). If this morning’s bounce can continue and be backed up with a bullish stochastic crossover on the daily chart, then a move back to 15,500 could be in the offing. Sellers will want to drive the price below the 50-day SMA to intensify the current pullback.
S&P 500
After such a quiet period, yesterday’s drop felt much worse than it actually was. The price has rebounded from the oversold level of yesterday afternoon, but now needs to clear 4190 and then 4205 to avoid giving the impression that a lower high has been created. A turn lower from below 4190 would certainly bolster the short-term bearish view.
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