FTSE 100, DAX and S&P 500 lacking in forward direction
Last week saw indices stall after a strong start to June, but the overall picture is still mixed, despite some small gains in early European trading.
FTSE 100 stuck below 7400
Last week saw the FTSE 100 unable to push above 7400, and since 11 June intraday highs have been falling, indicating a lack of forward momentum.
Dips towards 7300 have found buyers for now, but below 7300 the price may push back to 7150 and the lower end of the 7150 – 7400 trading range. A close above 7380 is needed to suggest a recovery in bullish momentum in the short term.
DAX still holding above 50-day moving average
While the DAX struggled to move higher last week, it has at least managed to hold above 12,000 and the 50-day simple moving average (SMA) of 12,102.
If this continues, we may see a push above 12,200, which would open the way to the highs for the year above 12,400. A move below 12,000 reverses this bullish view and suggests a deeper retracement, towards 11,700.
S&P 500 continues to move sideways
The S&P 500 spent last week digesting the strong move higher in early June, with a closely fought contest between buyers and sellers ending up ‘honours even’ for both sides.
Traders need to wait for a breach of the 2870 – 2910 range that held last week to provide further clues as to the near-term direction.
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