S&P 500, DAX & FTSE

Talking Points:

  • FOMC lifted 25-bps, light calendar subsequent week; SP could exam support line
  • ECB sparked large sensitivity in euro and stocks; DAX formidable to get a hoop on
  • BoE on Thursday; FTSE operation has traders scratching their heads for directional cues

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SP 500

Last week, a Fed lifted rates on Wednesday by a approaching 25-bps and indicated another dual rate hikes this year, also in line with expectations. Looking brazen to subsequent week, there aren’t any ‘high’ impact information events on a calendar. For a report of all information recover times and estimates, check out a economic calendar.

Broadly vocalization a SP 500 is still a tough hoop to get a reason on; is it solemnly gearing adult for a pierce to record levels or is temperate movement going to spin into another impassivity soon? Since bottoming in March, we are saying a array of higher-highs and higher-lows, that contingency be respected, yet again with movement lacking it wouldn’t take many to spin things down. For now, short-term debility could take a marketplace down to a trend-line from final month; a hold of this line would act as a good exam relocating forward, and a probable buy-the-dip opportunity.

SP 500 Daily Chart

SP 500 daily chart, with levels and lines

DAX

On Thursday, a ECB sent a euro acrobatics and DAX neatly aloft with their discreet position towards dismissal of stimulus. With a dovish executive bank Euro-zone bonds saw poignant bids opposite a board. Looking brazen to subsequent week, Draghi will be vocalization on Monday-Wednesday, yet with a ECB only behind us his difference might meant small to markets.

The ECB-fueled convene pushed a DAX adult to a trend-line using down off a record high and nearby a May peak. This might keep movement capped in a near-term, with choppy trade to rise as a marketplace digests Thursday’s move. The many estimable form of support can be found around a trend-line rising adult from a Mar low.

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DAX Daily Chart

DAX daily chart, levels and lines

FTSE

The FTSE and GBP had headlines to contend with final week (i.e. – Brexit), when a dirt staid argent forsaken tough and a FTSE, as was a box with a Euro-zone, got a tailwind from banking weakness. In a week ahead, traders will be focused on a BoE assembly on Thursday. It’s not a ‘Super Thursday’, so a assembly might not be all that ‘exciting’.

Right now, a FTSE in a word, is a disaster of choppy cost action. As discussed on Friday, it’s a tough call as to either it’s a lower-high combining or if a index is simply gaining a balance for another run during record levels. Friday’s cut behind lower, though, could lift a marketplace by support, yet until afterwards it’s a range-trader’s market; keep an eye on 7600/7550.

FTSE Daily Chart

FTSE daily draft with levels and lines

—Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter during @PaulRobinsonFX

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