Article by IG Senior Market Analyst Axel Rudolph
Analysis, prices and charts for the FTSE 100, DAX 40 and S&P 500
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FTSE 100 index The struggle continues
Looking at the previous batch of earnings names Thursday, the FTSE 100 continues to suffer, trailing other global indices that have shown signs of strength on hopes that the Fed will choose to leave its hiking campaign stalled for a while longer after jobless claims surface. Its weaker than expected.
The FTSE 100 is still in sight for late May and June highs of 7,655 to 7,660. It will continue to do so as long as there is a 7,555 basis point low this week.
Minor support can be spotted above this level at Thursday’s low of 7588.
Immediate resistance is seen along the temporary May-June resistance line at 7624, a rally above which would target the 7655-7660 area. A rally above this area would put the mid-May low at 7679 on the map.
Furthermore, the 55-day simple moving average (SMA) is zigzagging at 7,727.
FTSE 100 Daily Price Chart – Jun 9, 2023
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Dax 40 Still trying to head higher
The DAX 40 is once again trying to reach its late May high of 16,080 on the back of a stronger close on Wall Street.
This is the case even though the eurozone is technically mired in recession. GDP fell by an adjusted 0.1% in the first quarter of 2023 and the last three months of 2022, showing two consecutive quarters of negative growth.
A rally and close of the daily chart above the high of 16,080 would target last week’s high of 16,115, and above that lies the all-time May record high of 16,333.
As long as Thursday’s low is at 15,886 basis points, more upside is expected.
DAX 40 Daily Price Chart – Jun 9, 2023
Standard & Poor’s 500 It remains on track to reach a nine-month high on Monday
On Monday, the S&P 500 rose to a nine-month high of 4,299, near its August 2022 peak of 4,325, as traders await the Federal Reserve’s (FOMC) Open Market Committee meeting next week.
With general expectations that the Federal Reserve will keep interest rates steady at its June meeting, equity markets continue to look for a short-term supply. The area of 4299-4325 will remain in focus as long as no slippage is seen through Thursday’s low of 4257.
Potential retracements should find slight support at this week’s lows of 4267 to 4257, and below is a much more significant support between the mid-to-late May highs of 4234 to 4214.
S&P 500 Daily Price Chart – Jun 9, 2023
