FTSE 100, DAX 40 and S&P 500 await US CPI data
Technical analysis on FTSE 100, DAX 40 and S&P 500 within their fundamental context.
FTSE 100 continues to rally as unemployment lowest since 1974
The FTSE 100 looks bid on Tuesday as the UK jobless rate fell to 3.6% in the three months to July of 2022, the lowest reading since 1974, and compared to 3.8% in the previous period.
The index is now trading close to its late August high at 7,487, a rise and daily chart close above which would confirm a significant bullish reversal with the 25 August high at 7,536 and the August peak at 7,577 being eyed.
The area around the 7,487 high may cap in the short-term, however, as the FTSE 100 pauses its 3% rally of the past couple of days.
Good support comes in along the 200-day simple moving average (SMA) at 7,403.
DAX advance is ongoing
The DAX 40’s recovery from last week’s 12,688 low is ongoing on the back of stronger US and Asian markets and as the final German inflation rate was confirmed at 7.9% in August, its highest level since reunification.
However, on a month-on-month basis inflation came in at 0.3%, easing from 0.9% in July.
With the DAX 40 having overcome the 26 August high at 13,376, the 17 August low at 13,606 represents its next upside target, followed by the 13,796 early August high and the August peak at 13,975.
Minor support comes in along the 55-day SMA and the 30 August high at 13,182 to 13,157.
Four consecutive day S&P 500 rally continues
The S&P 500 extended gains for the fourth session, so far by over 6% from its early September low, amid hopes that the publication of US prices data later today might offer another signal that inflation has peaked.
The index is now trading back above the 4,102 5 August low and nears the 8 August high at 4,186, above which lurks the 26 August high at 4,215. Further up the 200-day SMA can be spotted at 4,256.
Minor support may be found around the 30 August high at 4,071 and below it along the 55-day SMA at 4,024. Key support remains to be seen at the early September low at 3,884, a fall through which would have medium-term bearish implications and would push the June and July lows at 3,720 to 3,636 back to the fore.
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