Equity averages rebound, aiming higher again

Intermediate
  • Setbacks early this week for the major, global equity indices have reflected both bullish fatigue heading into earnings season, alongside concerns regarding trade tensions between the US and Europe (despite the positive soundings from US-Sino trade talks).
  • Wednesday brought a slew of economic events, including UK GDP, US CPI, the ECB decision and FOMC Meeting Minutes, with the net result being rebounds for the global equity averages after the recent pullbacks.
  • This activity points towards further upside gains both today and potentially into and through mid-April.
  • Here we focus on the German benchmark, the DAX, but firstly the US broad yardstick index, the S&P 500.

S&P 500 E-Mini upside threat

A bounce Wednesday from above the firm 2862.25 support, off of our new 2877.25 level, sustaining upside forces from Monday’s new cycle high exactly at the psychological/ option barrier at 2900.0, plus from the early April bull gap (2844.5-40.75) to push above the March cycle peak (at 2866.0), to keep risks higher for Thursday.

The late January push above 2690.5 shifted the intermediate-term outlook to bullish.

For Today:

  • We see an upside bias for the new cycle high at 2900.0; break here aims for 2911.75, maybe towards 2924/25.
  • But below 2877.25 aims for 2862.25 and opens risk to 2853.75.

Intermediate-term Outlook – Upside Risks: We see an upside risk for 2955.5/61.25 and 3000.0

  • What Changes This? Below 2726.5 shifts the outlook back to neutral; through 2686.0 is needed for a bear theme.

4 Hour Chart

SP500

DAX restarting bull forces

A rebound Wednesday from just above our 11863 support (from 11866.5), to try to reject the recent correction theme lower and resume upside forces from the earlier April firm advance to another new cycle peak through the psychological/ option target at 12000 (to 12053), plus from the strong bull gap driven advance (gap at 11601.5-570), to keep risks to the upside for Thursday.

The early April push through a key resistance at 11640 shifted the intermediate-term outlook back to bullish.

For Today:

  • We see an upside bias for 11986; break here aims for 12053 and 12087/88, even 12136.
  • But below 11866.5/863 targets 11784and then maybe 11722.

Intermediate-term Outlook – Upside Risks: We see an upside risk for 12000, 12455 and 12873.

  • What Changes This? Below 11285 shifts the intermediate-term outlook straight to a bear theme.

 4 Hour Chart

DAX

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

Comments on this analysis

Your email address will not be published. Required fields are marked *


Latest Related News

Bullish European stocks indices – DAX and EURO STOXX 50 forecast

A strong tone, with a dip and a rebound on Monday to end November for European (and global) equity averages.This “risk on” theme remains from vaccine hopes and the Biden bounce.Tuesday has already seen very strong Chinese Manufacturing Purchasing Managers Index (PMI) data, with further global data due today.European averages have managed to hit to new cycle highs.Here we review the German and pan-European benchmark… Continued

Stocks stay very bullish into Thanksgiving – S&P 500 and FTSE 100 forecast

A firm tone seen for the main global stock indices this week, throughout November and also over the past 24 hours.The solid “risk on” theme is still been driven by:The ongoing Biden bounce, reinforced by the start of the transition of powerThe appointment of Janet Yellen as US Treasury SecretaryThe announcement of THREE very positive COVID-19 vaccine trial resultsLockdowns in Europe starting to work, with… Continued

European stocks averages hit new cycle highs – DAX and EURO STOXX 50 forecast

A strong rally for European (and global) equity indices to start the week with more positive news from Astra Zeneca/ Oxford University on their COVID-19 vaccine trials.This “risk on” theme was also helped by Janet Yellen’s appointment as Treasury Secretary by US President-elect Joe Biden.Plus, the positive outlook for stock averages has been helped by the start of the US Presidential transition of power.European averages… Continued

Stocks dip but bull themes intact (S&P 500 and FTSE 100 forecast)

A dip across major global equity averages over the past 24 hours, but the underlying theme stays bullish from the very strong November rallies.The ongoing “risk on” theme has been driven by:The announcement from Moderna and Pfizer of very positive COVID-19 vaccine trial resultsLockdown measures taking hold in Europe, with falling/ plateauing in the numbers of new COVID-19 casesThe ongoing Biden bounceBut the market is… Continued

European share indices stay strong (DAX and EURO STOXX 50 forecast)

A solid rally for European (and global) chare markets to begin the week with news from Moderna that their COVID-19 vaccine trials had been extremely successful with a 95% success rateThis on the back of similar results last week from Pfizer for their vaccineEuropean stock indices were higher Monday with this news, though not as aggressively up as last weekSurging COVID-19 cases and hospitalisations in… Continued

Forex Brokers in your location


SIGN UP

72% of retail investor accounts lose money when trading CFDs with this provider.


SIGN UP

74-89% of retail investor accounts lose money when trading CFDs with this provider.


SIGN UP

75% of retail investor accounts lose money when trading CFDs with this provider.


SIGN UP

76.4% of retail investor accounts lose money when trading CFDs with this provider.