The technical picture is very interesting regarding DOW, SP500 and FTSE for this week. After a last hours rally in US Monday, after six hours trial to push the indexes lower, a powerfull rally finished the day. The support level which held the whole session was the rising 21 day MA for these three indexes. This MA will continue on upside and get stronger by the day. Tuesday and Wednesday the daily 8 MA will turn up and get very strong the rest of the week. This means that a test of the the six weeks low, of this six week sideways trend, is very unlikely. It seems that a test and probably a break on upside might occur this week already. Next week the 8 week MA will turn up if all goes the way I said. However Tuesday and Wednesday could be very choppy.
DAX, SWED, CAC, IBEX and MIB still look very weak but I think that a positive move on upside in US might change this picture.
OIL has finally started to fall Monday and now there is a sell signal both weekly and daily.
Fundamentally Asia and Europe pushed the indexes down on the weak outcome of the EU finance ministers meeting. US markets opened lower on the same reason. It seems like the markets soon have priced in a Greece default. By holding the markets to fall further US has indicated that enough is enough about Greece for the moment. The American Central bank FED will start a two day meeting regarding the American interest rates and other ways to stimulate the economy. Since the Fed seldom says anything but good news to the market I expect the result of the meeting to be positive.
DAX, SWED, CAC, IBEX and MIB still look very weak but I think that a positive move on upside in US might change this picture.
OIL has finally started to fall Monday and now there is a sell signal both weekly and daily.
Fundamentally Asia and Europe pushed the indexes down on the weak outcome of the EU finance ministers meeting. US markets opened lower on the same reason. It seems like the markets soon have priced in a Greece default. By holding the markets to fall further US has indicated that enough is enough about Greece for the moment. The American Central bank FED will start a two day meeting regarding the American interest rates and other ways to stimulate the economy. Since the Fed seldom says anything but good news to the market I expect the result of the meeting to be positive.
No comments:
Post a Comment