News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 89.02%, while traders in Wall Street are at opposite extremes with 74.05%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/5Tt68HR25h
  • Heads Up:🇧🇷 BCB Copom Meeting Minutes due at 11:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-05-11
  • A “PIP” – which stands for Point in Percentage - is the unit of measure used by forex traders to define the smallest change in value between two currencies. Learn how to understand pips in forex here: https://t.co/AfAhmIoVZv https://t.co/dOChzDPvBW
  • Commodities Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Silver: 0.61% Gold: 0.26% Oil - US Crude: -0.88% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/FgSiJ4PcT3
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.31% 🇳🇿NZD: 0.27% 🇦🇺AUD: 0.24% 🇯🇵JPY: 0.05% 🇨🇦CAD: 0.00% 🇨🇭CHF: -0.13% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/qhfolQdLUG
  • Indices Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Wall Street: -0.43% US 500: -0.70% France 40: -1.89% FTSE 100: -2.07% Germany 30: -2.19% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/HjUzIke5gV
  • ZEW economic sentiment soars in May. #zew #euro #eurusd @DailyFX https://t.co/jEIeoeotgq
  • 💶 ZEW Economic Sentiment Index (MAY) Actual: 84 Previous: 66.3 https://www.dailyfx.com/economic-calendar#2021-05-11
  • 🇩🇪 ZEW Current Conditions (MAY) Actual: -40.1 Expected: -41.3 Previous: -48.8 https://www.dailyfx.com/economic-calendar#2021-05-11
  • 🇩🇪 ZEW Economic Sentiment Index (MAY) Actual: 84.4 Expected: 72 Previous: 70.7 https://www.dailyfx.com/economic-calendar#2021-05-11
Equities Q2 2021 Technical Forecast

Equities Q2 2021 Technical Forecast

Margaret Yang, CFA, Strategist

S&P 500 Index May Extend Higher as Nikkei 225, Hang Seng Index Consolidate

S&P 500 Index

The S&P 500 index is riding an ascending trend higher and may attempt to challenge a psychological resistance level at 4,000 (the 100% Fibonacci extension of the past year’s first phase rally). Breaking this boundary may open the door for further upside potential with an eye on 4,290 – the 127.2% Fibonacci extension on the same run. The overall trend retains a bullish bias as the index forms consecutive higher highs and lows since rebounding from its March 2020 trough.

Looking ahead, the upward trajectory remains intact for the US stock market, although some technical pullbacks are possible into the second quarter of 2021. Europe is facing a third viral wave amid a slowdown in vaccine progress, while the economic recovery around the world is likely to be uneven and prolonged. Reflation hopes and the inflation outlook may continue to boost longer-term bond yields, which are likely to exert pressure on growth stocks.

The S&P 500 registered an astonishing 80% gain over the past 12 months, underpinned by ultra-loose monetary policy and recovery prospects. On the weekly chart, the ascending trend showed no sign of stopping soon as the 4- and 10-week Simple Moving Average (SMA) lines are trending higher. Still, traders should be vigilant about short-term pullbacks if profit-taking kicks in.

S&P 500 Index – Weekly Timeframe (2019 to 2021)

Equities Q2 2021 Technical Forecast

Source: TradingView

Nikkei 225 Index

The Nikkei 225 failed to breach the 127.2% Fibonacci extension level of the March-June advance (30,200) and has retreated slightly on the weekly chart. The MACD indicator is about to form a bearish crossover, suggesting that upward momentum is fading and a deeper pullback is possible. A technical correction may not derail the index’s upward trajectory in the medium term, however, as suggested by the rising 10- and 20-week SMA lines.

Looking ahead, current consolidation may pave the way for higher highs should a robust global economic recovery drive up demand for Japanese exports and services.

Nikkei 225 Chart – Weekly Timeframe (2019 to 2021)

Equities Q2 2021 Technical Forecast

Source: TradingView

Hang Seng Index

Hong Kong’s Hang Seng Index (HSI) breached a major “Descending Channel” in early 2021 before prices entered a consolidative period. Recently, selling pressure appears to be gaining momentum, as suggested by the formation of a bearish MACD crossover.

Looking ahead, a firm break below the 23.6% Fibonacci retracement (28,800) would likely intensify selling pressure and expose the next key support level at 27,350 (the 38.2% Fibonacci retracement). Holding above the ceiling of the “Descending Channel” may pave the way for a price rebound should market sentiment recover.

Hang Seng Index – Weekly Timeframe (2019 to 2021)

Equities Q2 2021 Technical Forecast

Source: TradingView

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES