Technical Outlook: S&P 500, DAX
Equity Analysis and News
- S&P 500 | Upside Momentum Slowing as 2800 Nears
- DAX | Bearish Divergence and 11500 Curbs Further Gains
S&P 500 | Upside Momentum Slowing as 2800 Nears
As the S&P 500 edges towards key topside resistance at 2800, momentum has slowed with this week see the index somewhat range-bound, suggesting that the corrective move higher since the 2018 lows could be somewhat exhausted. As such, with the 76.4% Fibo level and 2800 holding thus far, there is a risk of a near-term pullback. Near-term support at 2730-40.
S&P 500 Price Chart: Daily Time Frame (Jun 2018 – Feb 2019)
DAX | Bearish Divergence and 11500 Curbs Further Gains
Following the corrective bounce from the rising trendline, the DAX is now hovering around resistance at 11480-11500, which could curb further advances in the index. As such, a hold below 11500 continues to keep the outlook bearish for the DAX. Alongside this, the bearish RSI divergence on the daily timeframe raises scope for a pullback in the index.
DAX Price Chart: Daily Time Frame (Jun 2018 – Feb 2019)
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--- Written by Justin McQueen, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.