Indices Update: S&P500 & Nikkei 225 Nearing The Year High

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Another day with lack of fundamentals across the board, yet the market volatility is expected to gradually rise through the day, as the Fed Fund Futures for December meeting hit the 100% mark, which means that traders are fully sure that the Fed will raise rates in December of this year. However, for me, this is alarming and should be watched very carefully as nothing should be taken for granted. Yet, in this article we will have a look at some of the global equities from a technical point of view, explaining the upcoming possible scenarios ahead.

S&P500 Closes At Record High

The S&P500 managed to break above its August record high and continued its way to posting a new record nearing 2200, closing yesterday’s trading at 2198, which is the session high and a record high. Such close from a technical point of view is positive. Yet, a confirmation is still needed, through trading a full week well above 2190 to confirm a daily and a weekly breakout. Otherwise, the possibility of another leg lower, given the fact that the Federal Reserve is set to raise rates in December is still possible. In the meantime, a confirmation would clear the way for further gains ahead. To where? According to Fibonacci Extension, 2202 seen as an immediate resistance followed by 2230 on the short term. As for the support area, 2190 should be a solid support.

Levels To Watch

S3

S2 S1 Pivot R1 R2 R3
2168.72 2174.55 2178.23 2184.06 2187.74 2193.57

2197.25

FTSE100 May Test 6900

FTSE100 began the week lower and traded below 6800 for a very short period of time. However, after the British PM remarks yesterday regarding cutting corporate taxes, to be the lowest among G20 countries, FTSE100 spiked at the beginning of today’s trading adding more than 60 points (+1.0%) so far. In the meantime, the Index seems to be supported above 6800, while the technical indicators are not heavily overbought on most of the time trades, which keeps the chances for another jump in the coming days. For the time being, the next immediate resistance stands at 6900, which should be watched very carefully, as a break above that resistance would clear the way for further gains, probably above 6950.

S3

S2 S1 Pivot R1 R2 R3
6681.04 6717.60 6747.78 6784.34 6814.52 6851.08

6881.26

DAX30 Stuck Below 10800

Dax index has been stuck below a solid resistance area since August until today which stands around 10800, forming 4 consecutive tops until this report is released with no clear break above that resistance. Yet, there is still a chance for another attempt on weaker Euro and broader gains in global equities, which should be watched very carefully as a failure to break above that resistance, would increase the downside possibilities. On the short term, the immediate support area stands around 10700 followed by 10630.

S3

S2 S1 Pivot R1 R2 R3
10474.25 10533.75 10609.00 10668.50 10743.75 10803.25

10878.50

Nikkei 225 Nearing The Year High

Despite the recent drop in Nikkei 225 index following Trump victory, and following the entire global equities, Nikkei 225 managed to recover and extended its gains all the way above 18000 mark, reaching as high as 18162 today. This is also despite the fact that the index dropped after Today’s Tsunami in Japan, nearing this year’s high. The index is few points away from recovering the year’s loss and might turn into green (YTD). The index is trading around its 16.8% Fibo retracement from the recent medium-term decline (from November 2015 high to 2016 lows). A weekly close above that level is still needed to confirm this week’s breakout above 18000. Otherwise, another leg lower could be seen ahead. The immediate resistance remains at 18200.

S3

S2 S1 Pivot R1 R2 R3
17911.63 17959.71 18032.87 18080.95 18154.11 18202.19

18275.35

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