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Technical Outlook: S&P 500 Upside Limited, DAX Makes Topside Breach

Technical Outlook: S&P 500 Upside Limited, DAX Makes Topside Breach

Justin McQueen, Strategist

Equity Analysis and News

  • S&P 500 | Descending Trendline to Spark Inflection Point
  • DAX | Key Resistance Cleared, Bulls Target 11500

S&P 500 | Descending Trendline to Spark Inflection Point

Following the closing break above 2600, the S&P 500 has continued to push for better levels. However, momentum to the upside could possibly be curbed by notable resistance at the 2700 level, which also coincides with the 61.8% Fibonacci retracement. Alongside this, the descending trendline from the record high sits at 2710-20, which could allow for a potential topping out for the index.

S&P 500 Price Chart: Daily Time Frame (Sep 2018 – Jan 2019)

S&P 500 Daily Price Chart

DAX | Key Resistance Cleared, Bulls Target 11500

As noted last week, the DAX had reached the first big level of resistance, which has subsequently been broken. As such, eyes are on a move towards the 100DMA (11250), which could offer the next level of resistance. A break above however, increases scope of a test of 11500, which roughly coincides with the 38.2% Fibonacci retracement of the 2018 peak to the 2018 low.

DAX Price Chart: Daily Time Frame (Dec 2017 – Jan 2019)

DAX Daily Price Chart

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX

Other Weekly Technical Forecasts:

Australian Dollar Forecast: AUD/USD, AUD/CAD Prepare for Next Big Moves as AUD/JPY May Reverse

British Pound Forecast:Taking a Post-Rally Breather

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

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