Dow, Dax and Nikkei 225 all stage a recovery
Indices managed to rebound on Monday after finishing last week with more losses.
Dow rebounds after post-NFP weakness
The Dow Jones index rallied yesterday, recouping the losses suffered on Friday and moving higher from the near the 50-day simple moving average (SMA), averting a more bearish view.
Notably it did fail to push on above 41,000 and the highs from Friday, so this will be a crucial goal for the bulls in upcoming sessions. A close above 41,000 would help to suggest that a low has formed and a push back to the recent record high could result.
A reversal and close back below the 50-day SMA helps to suggest further losses and that September’s often weak seasonality is taking effect once more.
Dax recovers from Friday low
After slumping to a near four-week low on Friday, the DAX index managed to recover yesterday.
Further gains above 18,500 would help to suggest that a low has formed and that, like the Dow, the index can push on to the recent record highs.
Sellers will want to see a reversal that takes out the 18,200 low from Friday and Monday, and then opens the way to the 200-day SMA, currently 17,833.
Nikkei 225 steadies after early September losses
Buyers managed to step in here to defend the Nikkei 225 index too, halting a decline that had seen the index lose 4,000 points since the beginning of the month.
Nikkei bulls will be hoping this marks the establishment of a higher low, and that additional gains above 37,000 can result that will put the index back on course for 39,000. This would continue the recovery from the August intraday lows towards 30,000 and around the closing lows of 35,500.
A reversal back below 35,000 signals that the sellers have the upper hand once more.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Take a position on indices
Deal on the world’s major stock indices today.
- Trade the lowest Wall Street spreads on the market
- 1-point spread on the FTSE 100 and Germany 40
- The only provider to offer 24-hour pricing
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
