Weekly Market Brief (Indices)

INDICES

AUSTRALASIA

ASX – 6276 ( +20 or +0.32% )

The ASX was one of the few major markets that managed to close higher last week how remains in a very narrow range, closing right at our key level of 6276.

VOLATILITY ALERTS:
Tue 14:30 – NAB Business Confidence
Wed 11:30 – Wage Price Index (quarterly)
Thu 11:30 – Unemployment Rate
Fri 09:30 – RBA Governor Lowe Speaks

For a continued move higher we must now see the ASX close above 6276. Should this occur we will look for a move into 6345, and if momentum to the upside is very strong we cannot rule out a move to 6440.

If the ASX cannot close above 6276, we will look for a move back down to 6206 before a pause. A strong break and close below this level however could see the ASX retest 6140, and if downside momentum is very strong we could see a move down to 6070.

 

EUROPE

DAX – 12412 ( -228 or -1.8% )

Last week we mentioned the DAX was showing topping signs and this market followed through with a strong sell-off on Friday. 

VOLATILITY ALERTS:
Tue 16:00 – German Prelim GDP (quarterly)
Tue 19:00 – German ZEW Economic Sentiment

For a continued move to the upside we must now see the DAX hold above 12384 followed by a move into 12566. A break of this level could then result into a quick move into 12640; followed by continuation into 12714. If momentum to the upside is very strong we cannot rule out a move to 12830.

If the DAX fails to close and hold above 12384, we expect to see a move back down into 12198 before a pause. A break below this level however means we may see more selling into 12115; and if momentum is very strong to the downside we may see a sharp move into 12044.

 

US

SP500 – 2838 ( -3 or -0.11% )

The S&P finished off the week down slightly; however this week will be a key week for this market. 

VOLATILITY ALERTS:
Wed 22:30 – Retail Sales (monthly)
Thu 22:30 – Building Permits
Sat 00:00 – Prelim UoM Consumer Sentiment

For a move higher we would like to see the S&P close and hold above 2840. Should this occur the stage is set for a retest of 2870 and any break above this level could see new all-time highs into 2902.

If we cannot hold above 2840, we will look for a move back down to 2808. A break below this level may result in another quick move down into 2794 and 2785; and if momentum to the downside is very strong we cannot rule out a move into 2760.

 

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