Indices edge down in early trading
After Monday’s bounce some of the forward momentum has stalled, although most of the gains are still intact.
FTSE 100
After bouncing from the 50-day simple moving average (SMA) yesterday (7032), the FTSE 100 is looking to continue its push higher, targeting 7200 once again as the uptrend revives from yesterday’s higher low. The sellers seem to have ceded control to the buyers again, and only a reversal back below 6950 would provide a more bearish outlook.
DAX
Friday’s brief weakness has been shrugged off it seems, and with yesterday seeing the price recover back above the 200-day SMA (15,415) another push to a record high seems to be in the offing. The bullish outlook has reasserted itself remarkably quickly, with sellers once again finding their limited window of opportunity being slammed shut.
S&P 500
There have been several instances in the past year of a swift drop followed by an equally swift rebound, and there is no clear consensus on what happens next for the S&P 500. But for now the buyers seem to be in charge, and the bounce back above the index’s 50-day SMA (4187) seems to signal more gains ahead. Sellers will need to get the price back below 4150 to open the way to renewed downside.
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