FTSE 100, DAX and S&P 500 all looking to continue rally
Indices rebounded on Friday, and while trade headlines are still a risk, more gains seem likely.
FTSE 100 targets recent peak
While still down sharply on last week, the FTSE 100 has rebounded from the low seen on Thursday. A push back towards the top end of the current range may now develop, towards 7440, but a longer-term bullish view requires a close above 7450.
Intraday dips on the way towards 7440 may provide other buying opportunities. The bounce from 7130 means that a move back below this level is needed to revive a more bearish view.
DAX looks to make up lost ground
The DAX spent all week recovering from Monday’s drop and while it still has some ground to make up the overall push higher looks to be intact.
For now it seems that the bounce from 12,950 has created a higher low, and with daily stochastics providing a bullish crossover momentum is shifting once again to the upside. A move back below 12,950 would have to occur in order to cancel out the expectation of higher prices.
S&P 500 follows up on v-shaped bounce
The rebound at the end of last week for the S&P 500 was as impressive as the sell-off had been at the beginning. The index is now close to previous all-time highs.
The attempt to drive the price lower ran out of steam around 3080, so bears need to drive the price back below this level to suggest more declines are likely. Trade war headlines appear to be the biggest risk for this market now.
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