FTSE 100, DAX and S&P 500 all consolidate after strong gains

Last week saw healthy gains for equity markets as central banks tilted their policies in a dovish direction. So far today markets have been quiet, as indices digest their recent gains.

FTSE 100 fights to hold its ground

The FTSE 100’s post-Federal Open Market Committee (FOMC) gains did not last, partly due to a short-term revival in sterling.

However, the price has bounced in early trading, and further gains would target 7475 and then on to 7530 and 7560. A move back below 7360 would begin to impair the bullish view, and open the way to 7320 and the low of 14 June.

FTSE 100 chart Source: ProRealTime

FTSE 100 chart Source: ProRealTime

DAX under pressure in early trading

Friday witnessed a swift drop, as the DAX continued to falter at 12,400, the level that held back progress at the beginning of May.

A daily close above this level opens the way to 12,600 and then 12,890. Early support was found at 12,265, but below this the price heads back to the 50-day simple moving average (SMA) at 12,141, which provided support in the first weeks of June.

DAX chart Source: ProRealTime

DAX chart Source: ProRealTime

S&P 500 eases off from record high

A fresh record for the S&P 500 (in price terms at least) confirms the bullish trend.

It is hardly surprising to see some weakness after such a strong upward move last week. The bullish view persists unless we see a move back below the 50-day SMA at 2878. Overall, intraday dips may continue to be buying opportunities.

S&P 500 chart Source: ProRealTime

S&P 500 chart Source: ProRealTime


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