Dow stumbles but Nasdaq 100 and DAX looking stronger
While the Dow failed to hold above 40,000 yesterday, the Nasdaq 100 and Dax are providing a more bullish short-term view.
Dow Jones
Wednesday saw the Dow Jones index fail to continue Tuesday’s huge gains, dropping back below 40,000, but it avoided a significant turn lower. If today can see a recovery and close above 40,000 then a challenge of 41,000 may develop.
A renewed drop targets this week’s low at 38,000, and then below this comes the early April lows.
Nasdaq 100
The Nasdaq 100 index failed to clear 19,000 on Wednesday, but it did succeed in hanging on to its gains from Tuesday. Since 9 April the area from 19,000 to 19,230 has marked a barrier to any further upside. A close above this is needed to open the way to more short-term upside.
A failure to clear 19,000 increases the chances of a new turn lower that could result in a drop towards the lows from early April.
DAX 40
The DAX 40 continues to recoup losses from earlier in April, and a close above 22,000 would mark a fresh positive development.
From here a move back towards the highs of March could be contemplated, as money continues to flow out of US assets and into other markets. Though with a global recession much more likely, such a bounce could be short-lived.
A close back below 21,600 might signal that a lower high has been created, boosting the bearish medium-term view.
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