FTSE 100, DAX 40 and S&P 500 subdued ahead of Fed and ECB meetings
Outlook on FTSE 100, DAX 40 and S&P 500 amid central bank rate decisions.
FTSE 100 so far remains above support amid stronger-than-expected UK GDP data
The FTSE 100 has so far managed to hold above its 7,429 to 7,421 support zone, made up of the mid-November high and late November low as UK GDP growth for October came in at a stronger-than-expected 0.5%, the biggest increase in a year, which followed a contraction of 0.6% in September.
While the 7,515 September peak caps, the risk of a slip through the late November low at 7,421 remains in place. As long as it underpins on a daily chart closing basis, the October-to-December uptrend remains intact, though.
Failure at 7,421 would engage the early November high at 7,378.
DAX 40 trades in low volatility ahead of ECB meeting
Last week the DAX 40 had its first negative week, on global recession fears, after nine consecutive positive weeks which produced an over 23% rally.
The index began this week on a weaker footing, ahead of this week’s US Federal Reserve (Fed) and the European Central Bank (ECB) rate decisions with both expected to raise rates by 50 basis points, but so far remains above last week’s low at 14,192. While it and the mid-November lows at 14,150 to 14,125 hold on a daily chart closing basis, further upside into year-end may be in store.
Immediate resistance above the 14,325 late November low comes in at Friday’s 14,389 high and, further up, at the mid-November high at 14,442.
S&P 500 slips towards key support ahead of US Fed meeting
The S&P 500 is seen dropping back to its 3,918 to 3,904 support zone, consisting of the 20 September and late October, early November highs as well as the mid-November and early December lows, ahead of this week's US Federal Reserve (Fed) rate announcement.
While the index remains above 3,904 on a daily chart closing basis, it may revisit Friday’s high at 3,987, the minor psychological 4,000 mark and perhaps also the 200-day simple moving average (SMA) at 4,026 around which it failed earlier this month.
A drop through the 3,904 mid-November trough would most likely provoke a sell-off towards the 3,884 early September low and the 55-day SMA and early October high at 3,839 to 3,807.
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