- The “risk on” theme continues with global stocks staying strong over the past 24 hours since the signing of US-China trade deal.
- The US stock averages have soared to new all-time higher with the Dow Jones Industrial Average (DJIA) above the 29000 level and the broad benchmark index, the S&P 500 through 3300.
- The Q1 earnings season remains at an early stage but continues to be broadly positive.
- The European equity averages have yet to overcome their earlier January highs, with risk for these indices to play catch up through mid-month.
- Her we focus on the EURO STOXX 50 and DAX.
EURO STOXX 50 day trade outlook: Bounce sets risks higher
A Thursday rebound as we had flagged for to build on Wednesday’s dip and small rebound that had held above 3733/29 support, retaining upside pressures from the earlier January surge (above 3772/74 resistance barriers), keeping the bias higher into Friday.
- We see an upside bias for 3780 and 3796/98/3800; break here aims for 3814 and 3829.
- But below 3761 aims for 3744 and maybe towards 3733/29 and even 3716.
EURO STOXX 50 intermediate-term outlook
A December surge through the key 3729 peak signalled an intermediate-term bullish shift.
Upside risks: We see an upside risk for and 3843 and 4000.
What changes this? Below 3672 shifts the intermediate-term outlook to neutral and below 3591 to an intermediate-term bear theme.
4 Hour EURO STOXX 50 Future Chart
DAX day trade outlook: Still aiming for a rebound
A resilient Wednesday-Thursday consolidation after Tuesday’s spike lower to minimally below our support at 13357.5 to rebound from 13357, to retain upside pressures from the earlier January very aggressive selloff and rally to a new cycle high above key 13449.5/458.5 (for an intermediate-term shift back to bullish), to keep the bias higher into Friday.
- We see an upside bias for 13504/509 and the new cycle peak at 13547; break here aims for 13575 and maybe towards 13633.
- But below 13357.5/357 aims for 13279.5 and maybe 13200/190.
DAX intermediate-term outlook
A January push above 13458.5 has renewed the intermediate-term bull trend.
Upside threat: We see an intermediate-term bull trend to aim for 13552.5, 13750 and 13955.
What changes this? Below 13079.5 neutralises the intermediate-term bull trend; below 12939 sets an intermediate-term bear trend.
4 Hour DAX Future Chart