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The FTSE100 chart gives a ‘Death Cross’ signal, while US Market Futures remain undecided ($SPY $DIA #FTSE100 #DAX)

05 Mar 2018 | by: James Moore

In London, the FTSE 100 chart has provided a ‘Death Cross’ signal.  This occurs when a longer term Moving Average falls below a shorter term one, and today the 50 DMA has fallen below the 200 DMA on the FTSE 100.  As the name suggests, it’s a very negative signal and is often followed by a downward market trend.

In the US, the Dow Jones and S&P 500 futures are hovering around yesterdays close with minimal movement.  Both have found a level of support just below their 200 Day Moving Averages.  Whilst this offers a moment of calm, we will need to wait and see if this consolidation becomes an area of entrenched resistance or a potential support level.

Back nearer to home, the German DAX is up almost 1% after initially dipping 2% earlier. It’s clinging on to support around the 12,000 level.  This is quite a key zone retest as it’s this area that offered support during the initial correction back in February.

Author: Stuart Langelaan

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