Indices Highlights:
- S&P 500 looking for a new record high
- DAX stuck sideways, but don’t give up on it yet
- FTSE chart negatively tilted, but has bullish potential
The S&P 500 continued its way higher last week, finally filling the February 24 corona-gap. All that is left to come full circle is make a new record high, which can be done by crossing 3393. It seems at this juncture that is all but a given, but of course there are no guarantees.
With that said, longs need to continue to vigilant as even though a new record high is only a short distance away it doesn’t mean a pullback won’t develop first before marching to a new high. A pullback will likely find support around 3276 or a the trend-line from May. Overall, the trading bias remains bullish as a new week rolls around.
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S&P 500 Daily Chart (near a new record)
S&P 500 Chart by TradingView
The DAX is lagging far behind the stronger US market, trading well below the June high let alone the all-time highs. There is solid resistance around the 12950-area. At its feet, the DAX has support right around the 200-day MA at 12206. Perhaps at some juncture the DAX will get into gear and rally, but if the S&P keeps breaking higher with no progress out of the German benchmark, it could later on be the go-to short once the S&P eventually turns lower. For now, it not likely not to fall too far without global stocks declining in earnest.
DAX 30 Daily Chart (stuck in place with levels above and below)
DAX Chart by TradingView
The FTSE remains on the weak-side with it far below the all-time high and well off the early June high. The general tone remains negative, but with some time it could morph into a bull-flag. For the coming week the key for a potentially bullish outlook to remain intact is for the FTSE to stay above last week’s low at 5857. Overall, the trading bias is neutral for now given the lack of a good-looking risk/reward opportunity.
FTSE 100 Daily Chart (tilted down, could become bull-flag)
FTSE Chart by TradingView
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—Written by Paul Robinson, Market Analyst
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