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