Talking Points
- CAC 40 Prints a New Weekly Low After NFP
- Next Support is Found Near 4,400
- SSI Reads at +1.48 with 60% of Positioning Long
The CAC 40 is turning lower this morning as equities markets have sold off after this morning’s US NFP figures release. Non-Farm Payrolls were expected at 160,000 and were released at a disappointing 38,000. Currently the CAC 40 is trading at weekly lows, and off -.91% for today’s session. Publicis Groupe is leading the decline, and is trading down -5.42% so far.
CAC 40 Daily Chart
(Created using Marketscope 2.0 Charts)
With the CAC 40 turning lower this morning, it is expected that the Index will close lower for the third session this week. This turn in price action begun with a test of key resistance on Tuesday near 4.536.89. As prices continue to fall, traders should watch to see if the Index trades below the psychological values of support at 4,400. A move below this value then exposes the next value of support, which resides at the May 2016 low at a price of 4,244.50. Alternatively, in the event of a reversal, traders should look for a bounce in price from support in an attempt to retest the previously mentioned point of resistance.
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SSI (speculative sentiment index) for the CAC 40 (Ticker: FRA40) has flipped positive since the last report to read at a value of +1.48. With 60% of positioning long, this may suggest further declines for the Index. Traders looking for additional confirmation of a downtrend should watch for SSI to read at an extreme of +2.0 or greater. Alternatively, in the event of a reversal,
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