Weekly Market Brief (Indices)
|AUSTRALASIA
ASX – 6092 ( +37 or +0.61% )
The ASX has broken out to higher prices and the question now is can this market continue to rally from here?
VOLATILITY ALERTS:
Tue 11:30 – Monetary Policy Meeting Minutes
Wed 23:30 – RBA Governor Lowe Speaks
For a continued move higher we must now see the ASX hold above 6070. Should this occur we will look for a move into 6140. A strong break above this level could see a strong move into 6206 by the week’s end.
If the ASX cannot hold above 6070, we will look for a move back down to 6010. A strong break and close below this level could see the ASX retest 5985, and if downside momentum is strong we could quickly see a further move all the way back down into 5921.
EUROPE
DAX – 13065 ( +274 or +2.14% )
We hope you guys saw the DAX ‘pop’ on Thursday! The market rallied almost 400 points and has now come into a very key area.
VOLATILITY ALERTS:
Tue 06:00 – ECB President Draghi Speaks
Wed 23:30 – ECB President Draghi Speaks
Thu 19:45 – German Buba President Weidmann Speaks
Fri 17:30 – German Flash Manufacturing PMI
Fri 17:30 – German Flash Services PMI
For a continued move to the upside we must now see the DAX hold above 13050. Should this occur we will look for a strong move into 13205, and if momentum remains strong a push back higher into 13301.
If the DAX fails to hold above 13050, we may see a retest back down into the key level of 12921.A close below this level is likely to see a retest of 12714; however if momentum is very strong to the downside we cannot rule out a move to 12566.
US
SP500 – 2777 ( -1 or -0.04% )
The S&P spent the majority of last week in a sideways range despite an increase in interest rates. As such, our levels remain unchanged.
VOLATILITY ALERTS:
Tue 22:30 – Building Permits
Wed 22:30 – Current Account
Wed 23:30 – FED Chair Powell Speaks
Thu 00:00 – Existing Home Sales
Thu 22:30 – Philly FED Manufacturing Index
For a move higher we would like to see the S&P close and hold above 2760. Should this occur we will look for a retest of the key 2785 level. A strong break and close above this level could see another retest of 2802 and 2808, and if momentum remains strong to the upside we cannot rule out a move to 2836.
If we cannot hold above 2760, we could see this market continue to sell-off into 2736 before a pause. If momentum to the downside is strong we may see a move lower into 2704; and a close below this level may result in a move down to 2680 and 2660.
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