Equity Analysis and News
- S&P 500 Maintains its bullish path
- Dow Jones breaks above trendline resistance posting fresh record highs
| Price | 200DMA | RSI | Open Interest | IG Sentiment | |
|---|---|---|---|---|---|
| Europe | |||||
| FTSE 100 | 7512 | 7491 | 68 | 600,367 | Mixed |
| DAX (Closed) | 12353 | 12484 | 63 | - | Bearish |
| CAC 40 | 5495 | 5387 | 68 | 279,771 | Mixed |
| US | |||||
| S&P 500 | 2922 | 2761 | 64 | 2,706,609 | Bullish |
| DJIA | 26548 | 25096 | 73 | 114,199 | Bullish |
| Nasdaq 100 | 7586 | 7022 | 63 | 248,299 | - |
S&P 500
Improved risk sentiment has stemmed from reports that the Italian government may reduce its budget deficit target for 2020 and 2021. As such, the S&P 500 is called to open modestly higher. The rising channel keeps the S&P 500 on a bullish path. However, Italian risks may be back on the rise depending on the EU’s response to the budget.
Dow Jones Industrial Average
After another record high reached in the DJIA, the bias remains to the upside, which has been further supported by the break above the trendline. Prices would need to hold above the trendline to keep the index firm. Alongside this, RSI indicators show that there is a bullish divergence and thus supporting the case for higher prices. However, failure to consolidate above may leave the index vulnerable to the downside with the bottom of the channel coinciding with the support volume zone at 26048.
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--- Written by Justin McQueen, Market Analyst
To contact Justin, email him at Justin.mcqueen@ig.com
Follow Justin on Twitter @JMcQueenFX
