FTSE 100, DAX and S&P 500 try to find support
Outlook on FTSE 100, DAX 40 and S&P 500 following a week of losses and a short-lived military coup in Russia.
FTSE 100 tries to hold above its May low
After six consecutive days of losses the FTSE 100 is trying to stabilise above its 7,439 to 7,433 May and last week’s lows. The short-lived military coup by the Russian Wagner mercenary group over the weekend has not led to any additional volatility as the situation seems to have de-escalated.
Nonetheless the UK blue chip index remains technically under pressure and a fall through 7,433 on a daily chart closing basis would have further negative implications with the 24 March low at 7,331 and also the 7,204 March trough being eyed. Only a bullish reversal and rise above Wednesday’s low at 7,518 could put the 200-day simple moving average (SMA) at 7,554 back on the cards. While remaining below it, further downside is likely to be seen.
DAX 40 tries to find interim support
Following five consecutive days of losses the DAX 40 is expected to regain some lost ground on Monday and stabilise if the German Ifo business climate for June permits. The early June low at 15,885 and also the 55-day simple moving average (SMA) at 15,951 may be revisited but may cap. Only a rise and daily chart close above Thursday’s 16,011 high would mean that the current bounce is gaining traction. While below this level, the odds of further downside being seen remain high. Failure at last week’s low at 15,731 would put key support between the May-to-June lows at 15,659 to 15,625 on the map. If slid through, a significant medium-term top will have been formed.
S&P 500 continues to drift lower
The S&P 500 has been declining from its 14-month high at 4,447 for six consecutive days on risk-off sentiment as investors worry about the effect higher rates for longer will have on the economy. Failure at Friday’s 4,341 low would engage the 4,336 mid-June low, below which lies the early June high at 4,300. Minor resistance is to be found around the minor psychological 4,400 mark and at Tuesday’s high at 4,405.
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