FTSE 100 (#UKX)
The FTSE 100 had a negative week down -2.33%.
For this week the FTSE could recover ground to 7.080 and then test 7,020 again.
MACD crossed strongly to the downside followed by a RSI, which after the divergence is now at the 43 level.
The bearish wedge exploded on Friday bringing the index to reconcile with the 50MA. Given the sharp fall, the # UKX could bounce off the 50 and test the 7.080 level again and then proceed to the downside.
However, a second scenario could occur, if the FTSE breaks the barrier of the 50MA . This would imply a test of the 6.900 level.
For the moment we are more in favor of a rebound on the 50MA, also consider the recent weakening of the pound: a weak GBP / USD has generally led to bullish movements in the FTSE 100.
Support at 6,980
Resistance at 7.122
The FTSEMIB had a negative week down by -2.32%
For the week ahead, the index could retest the 25.500 level and then continue downward. A missed rebound will bring the FTSEMIB straight to 24.930.
MACD finally crossed to the downside followed also by a strong bearish move in the RSI.
At the moment, the FTSEMIB has stopped at an intermediate support area which could lead the index to a short rebound. The most important area, and our target for any long positions, is the one at 24.930. Level of the 50MA and which has often played the role of strong support for bullish momentum.
Support at 25,554
Resistance at 24.930
The DAX ended the week down -2.20%.
For the week we expect a rebound to 15,400 which could lead the DAX to test 15,540 again.
If it fails to reverse the direction, the index will point to 15,200
MACD and RSI have both turned to the downside after a phase of consolidation. In particular, the RSI stopped at a strong level of internal support.
The bearish descent stopped at the 50-day average, a level that has often played the role of support for bullish momentum.
Given the proximity to the resistance level, we will wait to see how the DAX performs on the 50-day average: a rebound could lead to strong bullish swings. Conversely, a close below it will lead the index to test the support at 15.135.
Support at 15.135
Resistance at 15.540
The S&P 500 had a negative week down by -1.77%.
For the week ahead, we believe in a bearish continuation to 4.130.
The MACD crossed to the downside along with the RSI which, having left the divergence with the price, stopped at a strong internal support level.
The close below the 50MA could lead the index to continue the bearish fluctuation up to the current support. This theory would be nullified if the # SPX managed to close above 4.190 at the beginning of the week.
A test of the current support could offer an excellent level for long positions.
Support at 4.125
Resistance at 4.190