Weekly Market Brief: FTSE, DAX, NASDAQ 100, S&P 500 and Dow
Francesco Bergamini | Dec 11, 2022 06:52AM ET
The FTSE 100 index had a week down by -1.05%. For the week ahead, we favor a retracement to the 7,400 area.
Indicators
A negative week for the British index, as it almost seems to want to repeat August's setup.
The price finally broke below the 9-day average (red line), a strong dynamic resistance since October.
We believe this break is important, especially after a long upside phase: we could expect a short back-test of the 9MA and then, in our opinion, begin a downward phase.
MACD and RSI have started an initial reversal and mirror price action.
We are bearish on the FTSE 100 as we believe risk/reward is still in favor of further downsides: the short-term target remains the 50-day average (yellow line) today at 7,200.
- Support at 7,150
- Resistance at 7,600
The FTSE MIB index had a week down by -1.40%. We favor a retracement to the 23,700-23,500 area for the week ahead.
Indicators
A negative week for the Italian index, which saw the break of the narrow trading range in place since the beginning of November.
This move could be an early sign of further short-term bearish pressure. MACD and RSI are also slowing down and in line with the price.
After these initial declines, it is likely to expect a very brief recovery of momentum and then, in our view, proceed further downwards.
We are bearish on the FTSEMIB: November's strong stretches have only begun a retracement phase, and we believe a plausible short-term target is the 50-day average, now at 23,100.
- Support at 22,500
- Resistance to 24,850
DAX index had a week down by -1.09%. We favor a progressive retracement to 13,900 for the week ahead.
Indicators
A bearish week for the German index, which stays within the narrow trading range, started in November 2022.
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The few closes below the 9-day average (red line) seem to herald a possible downward trend reversal.
MACD and RSI are slowing down in line with the price action.
We are bearish on the DAX and in favor of possible short-term downward pressure: we believe the trend reversal has only just begun, and a possible short-term target is the 50-day average (yellow line), now at 13,600.
- Support at 13,100
- Resistance at 14,550
The S&P 500 had a week down by -3.37%. We favor a possible consolidation in the 3,900 area for the week ahead.
Indicators
A negative week for the US index, which sees the price at the November levels'.
The price action seems to be forming a possible “head and shoulders” setup, where we should, in theory, see a slight recovery followed by a stronger bearish reversal to at least 3,800 - 3,850.
MACD and RSI are retracing but continue to hold in positive territory. We remain neutral on the S&P 500 and prefer to wait for further market reversal.
- Support at 3,750
- Resistance at 4,100
The NASDAQ 100 index had a week down by -3.59%. We favor consolidation in the 11,500 area for the week ahead.
Indicators
A negative week for the Tech index keeps the price substantially unchanged from November.
The price is currently stuck between the 9 (red line) and 50 (yellow line) day averages, and only the break of one of these two levels will lead to more pronounced short-term volatility.
MACD and RSI are flat, reflecting a hesitant price action.
We are neutral on the NASDAQ 100, but with bearish expectations, a recovery in US 10-year rates could lead to further market downward pressure.
- Support at 10,400
- Resistance at 12,000
The Dow Jones Industrial Average index had a week down by -2.77%. We favor an initial retracement to the 33,000 area for the week ahead.
Indicators
A bearish week on the industrial index saw the price holding above the strong intermediate support at 33,400 anyway.
MACD and RSI mark a notable slowdown, although still in positive territory. Looking at previous price action, we believe risk/reward still favors possible short- to medium-term downsides.
We remain bearish on the DOW JONES and that only a retest with the 50-day average (yellow line) could offer interesting setups.
- Support at 31,200
- Resistance at 34,500
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