The major European equity indices ended the session with mixed results, with France’s CAC and Italy’s FTSE MIB finishing in negative territory while Germany and Spain posted gains.
Germany’s DAX rose 0.70% to 23,253.09, but the index continues to trade below its 200-day moving average at 23,472.30. A break above that long-term barometer would be needed to give the buyers some hope and some control (with work to do). Absent that and they sellers are in firm control technically.
France’s CAC 40 slipped 0.29% to 7,959.68, holding between its 50-day moving average at 8,033.91 on the topside and its 100-day moving average at 7,910.43 on the downside. Those levels will frame the battle for directional bias this week.
The UK’s FTSE 100 was nearly unchanged, down 0.05% at 9,534.92, but it did close just above its 50-day moving average at 9,516.61. Holding that level will serve as an important gauge of sentiment in the days ahead.
Spain’s IBEX outperformed, gaining 0.92% to 15,967.81. On Friday, the index found buyers against its rising 50-day moving average at 15,743.12, and today’s rebound off that level keeps the buyers in control. Remaining above the 50-day this week would reinforce the bullish bias.
Italy’s FTSE MIB fell 0.85% to 42,298.18. Today’s low at 42,159.58 briefly pushed the index below its 100-day moving average at 42,171.54, but sellers could not sustain momentum and the close came back above the MA. That 100-day moving average remains the key battleground for directional cues this week.
Meanwhile, in the US, the broader S&P and NASDAQ indices are trading at new highs.
- The S&P index is up 94.34 points or 1.43% at 6697.90. Last week, the price found support buyers near its 100 day moving average at 6552.33. The price is stretching toward its 50 day moving average at 6713.05. Get above that moving average would be more bullish technically.
- The NASDAQ index is up 532 points or 2.38% at 22803.11. Like the S&P index, the price tested/briefly moved below its 100 day moving average on Friday at 22079.30. The price has moved up toward its 50 day moving average at 22890.37.
- The Dow industrial average is up 273 points or 0.59% at 46518.74. It too is looking to test its 50 day moving average at 46667.73
This article was written by Greg Michalowski at investinglive.com.