FTSE 100, DAX 40 and Nasdaq 100 consolidate as risk-on sentiment diminishes
Outlook on FTSE 100, DAX 40 and Nasdaq 100 as US job openings fall to a near 2-year low.
FTSE 100 rejected by the 7,708 to 7,724 resistance zone
The late March FTSE 100 rally to the 7,708 to 7,724 mid-January and early February lows faltered at 7,728 on Tuesday as the global economic outlook worsened on US job openings which fell by 632 000, a near 2-year low, dragging US an Asian markets lower.
Support can be found around the 22 March high and along the one-month support line at 7,587. Much further down sits minor support at the 7,511 mid-March high.
A rise and daily chart close above Tuesday’s high at 7,728 is needed for the next band of resistance at 7,832 to 7,857 to be reached. It consists of the February-to-March resistance line and the 10 to late February lows.
Such an advance may perhaps only take place after this week’s prolonged Easter weekend but further upside is expected to be in store since the FTSE 100 made two consecutive quarterly gains, a pattern not seen in any bear market over the past 50 years.
This probably means the advance seen since October is a new bull market and not a bear market rally.
DAX 40 consolidates below near 1 ¼ year high
On Tuesday the DAX 40 briefly traded at levels last seen in January 2022 before slipping back below its March 15,709 high as risk-on sentiment diminished.
Immediate support can be spotted at the early February high at 15,553 and then along the one-month support line at 15,484.
Resistance on Wednesday sits between its February and March highs at 15,656 to 15,709 and then at Tuesday’s peak at 15,742, a rise and daily chart close above which would target the November 2021 and January 2022 highs at 16,288 and 16,298.
Nasdaq 100 comes off levels last traded in August 2022
On Tuesday the Nasdaq 100 managed to briefly rise to 13,226, a level last traded in August 2022, before US indices were dragged lower by the sharp drop in US job openings.
Hopes that this might lead to a more dovish Fed were diminished by comments from FOMC member Mester, who said rates would still have to rise.
A minor retracement lower towards the March-to-April tentative uptrend line at 12,978 may thus ensue with further support being seen at the 12,947 to 12,896 February-to-March highs.
The late August 2022 and Tuesday’s high at 13,206 to 13,226 represent immediate resistance, ahead of the 13,722 August 2022 peak.
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