DAX, S&P500, Nasdaq 100 and Nikkei 225. The trend is your friend
Kim Cramer Larsson
Technical Analyst, Saxo Bank
DAX is rising in a fairly narrow channel making new all-time highs almost daily.
RSI is not showing divergence indicating we are likely to see higher levels in coming days and possibly weeks.
If support at 15.985 (15.984 on the GER40 CFD – future) is broken we could see a bearish break out of the lower rising trend line initiating a correction down to around 15.750-15.650.
S&P500 got rejected at the medium term rising resistance line (dark blue). The index seems to be trading in a steep rising channel that could lead to new all-time highs. Yesterday’s session was close to retest highs. Minor support at around 4.622 needs to hold to support uptrend scenario. Support is at around 4.551.
Nasdaq 100 broke out of its rising channel with what seem to be just a minor correction. The Index seems to have found support at around the 16K mark so if it does not close below 15.905 the uptrend seems to be intact and we could see a push for higher levels in coming days. No divergence on RSI is supporting the scenario of a likely new all- time high.
JP225 (Nikkei225) is as quite different picture. The index has been in a short term uptrend past 5 weeks forming what looks like an Ascending triangle with strong resistance at around 19.960. If breaking above we could see JP225 test 31K level.
There seem to be strong support at around 29K; November low and 200 Simple Moving Average. A close below November low at around 28.968 the current uptrend scenario could be reversed.
Latest Market Insights
Quarterly Outlook Q3 2022: The Runaway Train
- Central banks' attempts to kill inflation is a paradigm shift, which could end in a deep recession.
Tangible assets and profitable growth are the winnersWith US equities officially in a bear market, the big question is where and when is the bottom in the current drawdown?
Understanding the lack of investment appetite among oil majorsThe everything rally seen in recent quarters has become more uneven, as its strength is driven by commodities in short supply.
The pressure is on as the wind leaves the sailsWith cryptocurrencies in sharp decline, are we entering a crypto winter or is the bear market a healthy clean-up of the crypto space?
Why the Fed can never catch up and what turns the US dollar lower?Many other central banks are set to eventually outpace the Fed in hiking rates, taking their real interest rates to levels higher than the Fed will achieve.
Bank of Japan: Swimming against the tideThe Japanese economy has gone from the age of deflation to rapidly rising prices in no time, leaving the Bank of Japan in a pickle.
Green transformation detour and bear market hibernationWith the impending risk of global econonomic derailment, we share the five things investors need to consider in this new half year.
Crisis redux for the eurozone?Whether there's going to be a recession in Europe or not, the path towards a stable economy will be agonizing.
Technical Outlook: Gold, Oil and a remarkable multi-decade perspective on EquitiesThe Nasdaq bubble pattern, USDJPY resistance, crude oil uptrend losing steam and the technical outlook for USD.
China: the train of new development paradigm left the station two years agoChina is transiting to a new development paradigm, as they are hit by deteriorating terms of trade, a slower global economy and an uncertain future while continuing attempts to contain the pandemic.