S&P 500, DAX Analysis and News
Source: Thomson Reuters, DailyFX
S&P 500 |Bulls appear to be taking control with the index making a topside breach of the 2940-60 resistance zone. The S&P 500 looks to be making a move to test the 3000 level with the RSI providing confirmation of an upside bias having hit a 5-week peak. For now, the focus will be on how the market responds to any modest pullbacks. Initial support is situated at 2968 (76.4% Fibonacci retracement), while the 50DMA resides at 2937. If indeed the index posts a closing break above 3000, this implies a potential move back towards record highs again.
S&P Price Chart: Daily Time Frame (Jun 2019 – Sep 2019)
DAX | Upward Pressure Resumes
In recent sessions the DAX continued to push higher having made a break above the 50 and 100DMAs. Subsequently, this confirms that the index looks to have bottomed out at 11500 in the interim. That said, with the 50% Fibonacci support holding at 11887, eyes are now for a test of 12291. As a reminder, focus will be on the ECB in the next, where the central bank is expected to unveil a new round of stimulus measures. However, with the markets setting the bar high for a dovish surprise, there is a risk of potential disappointment.
DAX Price Chart: Daily Timeframe (Oct 18 – Aug 19)
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--- Written by Justin McQueen, Market Analyst
To contact Justin, email him at Justin.mcqueen@ig.com
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