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. See our updated Privacy Policy here.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Wall Street
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
More View more
Real Time News
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here:
  • RT @Stephanie_Link: 84% of $SPX companies have beaten EPS estimates to date for Q3, which is tied for the 3rd highest percentage since 2008…
  • What is #NFP and how can you trade it? Find out:
  • What does it mean when one candle fully engulfs the previous in its price action? The bullish engulfing candle is one of the forex market?€?s most clear-cut price action signals. Figure out how to identify this pattern here:
  • Oil maintains a medium-term bullish outlook, but its overbought condition and price's proximity to key technical resistance may pave the way for a brief pullback before the next leg higher. Get your weekly oil forecast from @DColmanFX here:
  • It seems the markets are riding high, but risk is always lurking around the corner. Consider your escape plan before you find yourself in collapsing market. What are the top havens for different conditions in 2020? Find out from @JohnKicklighter here:
  • The update to the US GDP report may keep the Greenback under pressure as signs of a slowing recovery undermines speculation for an imminent shift in Fed policy. Get your weekly USD forecast from @DavidJSong here:
  • There a many different trading styles that can be applied to trading forex. Learn about different types of traders here:
  • Hang Seng Tech Index has likely formed a bullish “Inverse Head and Shoulders” chart pattern. Immediate support and resistance levels can be found at 5,800 and 7,433 respectively. Breaching above 7,433 would likely bring 8,266 into focus.
  • The Nasdaq 100 index has likely formed a bullish “Butterfly” chart pattern, which hints at further gains. The MACD indicator is about to form a bearish crossover, suggesting that upward momentum may be weakening and thus vulnerable to a short-term pullback.
Equities Q4 Technical Forecast: S&P 500 Bounces Back, DAX 40 and Nikkei 225 Faced With Indecision

Equities Q4 Technical Forecast: S&P 500 Bounces Back, DAX 40 and Nikkei 225 Faced With Indecision

Daniela Sabin Hathorn, Analyst

Equities Talking Points:

  • Bullish momentum faces strong resistance ahead
  • S&P 500, DAX 40, and Nikkei 225 key levels to watch for the 4th quarter

S&P 500

After months of riding above a rising trendline and marking continuous all-time highs, the S&P 500 has ended the third quarter with a slightly more negative tone. That said, despite the all-time bears getting excited, the pullback so far seems to be just that, a pullback. I struggle to see this as the beginning of something more given the amount of demand for US equities, and a possible increase in upcoming share buy-backs keeping equities supported.

So, looking ahead, the S&P 500 would ideally need to re-position itself above its ascending trendline to keep the bullish trend it has seen the last 3 quarters. And, to be honest, a week away from ending Q3 the index is already in a good position to do so, with the only immediate threat of resistance being the area where the 50-day and 20-day SMAs are converging (4,455 – 4,468).

I would expect the S&P 500 to continue pushing to new all-time highs in Q4, with regular corrections as traders take profits along the way, but the overall bullish trend shouldn’t be at risk as long as the index holds above 4,200 throughout the next few months.

S&P 500 Daily Chart

SPX Chart

DAX 40

The DAX 40 has tried on numerous occasions during the third quarter to break above the 16,000 mark but hasn’t succeeded thus far. In fact, the price of the DAX 40 at the end of the quarter is roughly where it started three months ago, with any minor gains having being reversed during the first three weeks of September.

But there have been numerous attempts from buyers to break higher, as shown on the Weekly chart by the hammer candlesticks circled in red, with the latest taking place after the recent pullback, a sign of a possible price reversal on the upside.

DAX 40 Weekly Chart

DAX 40 Chart


The Nikkei 225 has been a strong outperformer throughout the last month of Q3 as Prime Minister Suga’s announcement of resignation has sparked optimism about more capital injections into the economy under the new government. The breakout from the descending channel has seen the index break above the 30,000 mark, achieving a new 31-year high. But the last few candlesticks on the weekly chart are showing signs of indecision, with a hanging man formation possibly signaling a bearish price reversal in the works.

Holding above the 30,000 mark is going to be challenging in the immediate future so we may see a pullback towards recent support around 29,500 before buyers are able to gain further momentum. The bullish trend will be intact as long as it holds above 28,000, otherwise the Nikkei risks falling back into the descending channel once again.

Nikkei 225 Weekly Chart

Nikkei 225 Chart

Learn more about the stock market basics here or download our free trading guides.

--- Written by Daniela Sabin Hathorn, Market Analyst

Follow Daniela on Twitter @HathornSabin

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