Equity Indices & Commodities Outlook: DAX, S&P 500, Gold & More
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In today’s webinar, we focused on global indices, namely in Europe and the U.S., as they look poised to break key support levels. After an extended four-day holiday weekend, Europe came back online, and so far we are seeing pretty good selling pressure. The DAX is treading very close to breaking a couple of key levels/lines we have on the chart, while the CAC 40 and FTSE 100 are doing similar. The CAC is in danger of dropping back below the 2000-current trend-line it closed above a couple of weeks back, in addition to breaking trend-line support going back to November. The FTSE 100 is well below the June trend-line and close to taking out three bottoms in close proximity to one another formed since mid-March. A daily close below these levels opens up a path for lower prices.
In the U.S., markets started the week off on a positive note, but that may be about to change with risk sentiment fragile. The trend off the record high is still negative, and as long as the S&P 500 stays below the top-side trend-line off the March 1 record high, that will remain the case. There is a good possibility that the Monday rally was merely a bounce that will fizzle. We have our eyes set on 2300 with a turn lower.
Gold is trading around the 2011 trend-line, a widely popular line of interest. How it responds there will be very telling. Silver is up against its own levels of resistance, but not nearly as important as the trend-line in gold; we’re taking our cues off gold. The bias for lower prices in copper remains, but choppy price action makes it a tough one to trade. Shorts need to be vigilant in only selling rallies and not chasing lower as bounces have been frequent.
Crude oil has weakened a bit in recent sessions after having a big run. Overall, clarity is lacking at the moment, putting any bias to rest in either direction. We’ll revisit at a later time after the market has a chance to provide a better tell.
For full technical considerations, please see the video above.
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---Written by Paul Robinson, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.