Dow and NASDAQ 100 losses slow, while DAX remains under pressure
Last week saw steep losses for indices, but some early gains have been seen in opening trading on Monday.
Dow holding on above 40,000
After two days of heavy losses, the Dow Jones index still remains above its previous highs, as investors brace themselves for a busy week of earnings.
Further declines will target 40,080, and then down to rising trendline support from mid-June. Bulls will look for a revival back above 40,500 to suggest that a low has been formed for the time being.
NASDAQ 100 stabilises after losses
The past two weeks have witnessed the NASDAQ 100 index’s first real pullback since May.
The price neared the 50-day simple moving average (SMA) last week, and has moved higher this morning. It will need a move back above 19,800 to suggest that a low has formed. This might then see the index target the previous highs around 20,750.
DAX closes below key indicator
Friday saw the DAX 40 index close below the 100-day SMA for the first time since 13 November.
June and July saw the price hold above this indicator, so Friday’s weak close may signal that more losses are ahead. A close below 18,000 bolsters this view. Bulls will want to see a move back above the 100-day SMA in order to stave off the expectation of further declines.
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