- The bears fall lower, but work hard to keep up the momentum
- DAX 30 and S&P the main levels to look at
Shares took a decisive step lower last week, which started a broader adjustment phase, but this week’s move so far seems to be dismissive. The steps taken last week coincided with warnings from major banks about limited stock returns in the coming years, as well as lowering US GDP forecasts following the recent decline in employment reports and rising delta cases worldwide.
However, there are very few signs of investor fear, so we are likely to see the road when we see bears. The end of September / beginning of October is usually seasonally weak for the stock market, so I think it is necessary to increase pessimism in order to reduce the significant break. There is not much on today’s calendar that could significantly affect the direction of trading, so we can see stocks rise higher throughout the session, but investors are likely to monitor US inflation data on Tuesday to make sure prices rise. continue to move in line with their forecasts to keep the Fed focused on reducing asset purchases at the end of the year.
DAX 30 daily schedule
The DAX 30 is leading the way in Europe this morning after last week’s withdrawal found support near the 127.2% Fibonacci extension (15,424), which has been a major obstacle for bears in recent months. This morning, moving up starts with the 50-day SMA (15,720) finding short-term resistance, and so we can see a profit for the rest of the session. If so, I assume that the small movements in the daily candlestick (15,558 and 15,730) that are unconvincing will fall. On the other hand, the area between 15 730 and 15 800 may be tougher for bulls to crack.
S&P 500 daily schedule
The S&P 500 has followed a strict pattern last year, and last week’s lower gear fell nicely with its pattern. The rising trend line, which combines higher tides, has once again provided the basic support needed to reverse the selling pressure, and the index is rising again. One thing to note is that the width of the arc tightens as it bounces off the support of each trend line, and so this is probably a sign that the momentum is accelerating and we may see a noticeable decline at some point. For now, I would expect buyers to continue raising the target to 4,500 over the next few weeks, to 4,600.
– Written by Daniela Sabin Hathorn, market analyst
Follow Daniela on Twitter @HathornSabin