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.
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.
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.
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