FTSE 100, DAX and S&P 500 begin week under pressure
Outlook on FTSE 100, DAX 40 and S&P 500 as the ‘rates higher for longer’ scenario weighs on stocks.
FTSE 100 stays below 3 ½ month high
For the whole of last week the FTSE 100 remained below its three and a half month high at 7,747 but was supported by its 200-day simple moving average (SMA) at 7,647 which held.
A fall through last week’s low at 7,634 would push the 10 August low at 7,624 and then the early July high at 7,562 to the fore.
Resistance above the 7,688 June high can be spotted between the 7,723 July peak and the current September high at 7,747. These highs will need to be overcome for the psychological 7,800 mark and the 7,817 8 May high to be back in the picture.
DAX 40 trades near three-month low
The Germany 40 remains close to last week’s near six-month low at 15,451, made marginally below its July trough, a drop through which would have negative implications and put the mid-January high at 15,272 in its sights.
The July-to-August lows at 15,455 to 15,469 ahead of the mid-September low and 200-day simple moving average (SMA) at 15,561 to 15,586 should act as immediate resistance.
Only a rise and daily chart close above last Wednesday’s high at 15,810 would show that this year’s major support zone might once again have held. Unless this high gets bettered, the risk of another sharp sell-off remains in play.
S&P 500 remains bearish after six consecutive days of decline
The US Federal Reserve’s (Fed) hawkish pause provoked a sharp sell-off in US equity indices with the US 500 last week falling to below its June low at 4,328 to 4,317. Failure there could provoke a sell-off to the early June low at 4,257. Further down meanders the 200-day simple moving average (SMA) at 4,202.
A potential short-term bounce would have to deal with the 4,356 to 4,378 10 July and 25 August lows. More significant resistance sits between the June and early July highs as well as the 24 August high at 4,447 to 4,474.
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