Equities march higher into March

Intermediate
  • Strong advances and closes on Friday to start off March for the major European equity markets, with many benchmark averages hitting new 2019 highs.
  • Over the weekend, positive sounding once more from the US-China trade talks have seen global equity index futures markets already leap higher today (Monday 4th March), with the US equity benchmark the S&P 500 joining the party, with a bull gap to a new high for this year (as we had signalled for here in our last report on Friday).
  • Furthermore, the German benchmark index, the DAX, has pushed through important resistance from Q4 2018 and aims higher into today, into this week and maybe for the balance of Q3 (see below).

 

DAX bull trend extends again, now through key 11652.5 resistance  

Again, a strong advance Friday with a bull gap (subsequently closed) and a prod higher again overnight already to hit another new cycle high through a key swing peak from November 2018 at 11652.5, building on Thursday’s dip and a bounce from just above our notable 11395.5/385.5 foundation area (from 11397), keeping the bias higher Monday.

The mid-January probe above key 11245 set an intermediate-term bullish theme.

For Today:

  • We see an upside bias for 11678.5, then 11690/700; a break above aims towards a swing peak from November 2018 at 11814.5.
  • But below 11605/600 targets 11522.5 and maybe aims for 11460/50, which we would look to try to hold.

Intermediate-term Outlook – Upside Risks: We see an upside risk for 11814.5 and 12436.

  • What Changes This? Below 10779/778.5 shifts the outlook back to neutral; through 10673 is needed for a bear theme.

 

4 Hour Chart

DAX


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