S&P 500, DAX Technical Forecast
- S&P 500 | Posts Largest Weekly Loss This Year
- DAX | Key Fibonacci Support Under Threat on a Break Below 12000
Source: Thomson Reuters, DailyFX
S&P 500 | Posts Largest Weekly Loss This Year
The S&P 500 came under heavy selling throughout the week (-3.4%), posting its biggest weekly drop since Dec’18. Amid the rising trade war tensions, the index had made a decisive break below 2900. Support at 2830 has curbed further losses (at the time of writing), however, following the rejection of prior support, now resistance at 2885, the index looks to target south of the 2800 handle, provided the 23.6% Fibonacci retracement gives way.
S&P 500 Price Chart: Daily Time Frame (Oct 2018 – May 2019)
DAX | Key Fibonacci Support Under Threat on a Break Below 12000
The DAX saw its largest weekly loss in 2019 (-2.8%), which briefly dipped below the psychological 12000 level. The prior week gains had been curbed at the 12460 level, which represents the Sep 21st and 27th double top. Subsequently, the DAX proceeded to drop below the 61.8% Fibonacci retracement before finding support at 12000. A closing break below however, puts the 50% fib under threat.
DAX Price Chart: Daily Time Frame (Dec 2017 – May 2019)
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--- Written by Justin McQueen, Market Analyst
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