Friday’s US job report should start new wave of optimism in the markets. Although unemployment rate is unchanged but the gain of new jobs in non-farm sector was 20% lower than expected. This data will of course influence FED decision about interest rates. There are rumours that there will be no hike in June. What’s more almost certain 2 hikes in 2016 are now questioned. After new data many economist were pointing out only one hike – in December.
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This kind of information can give extra bullish impulse on all major stocks. We will see if that will happen but in my opinion odds are high.
S&P500
Two weeks ago bearish evening star showed up but it was rejected by other pattern. Outside Bar showed up on D1 chart and it is just above support at 2,040 pts. As long as index will stay above 2,040-2,020 pts support the main scenario is further appreciation and the most important task for bulls is breaking 2,100 pts resistance.
DAX
Strong resistance stopped appreciation two weeks ago in 10,500 pts area and until then there were decreases. On Friday index reached level of fibo 38.2% retracement which is basic retracement for corrections and after testing 9,780 pts level there was bullish rebound. Currently a lot of depends on Wall Street behaviour. If depreciation will be continued another important support will be at 9,500 pts level.
On the weekly chart we can see how tough task is waiting for bulls – to attack resistance in 10,500-10,800 pts area. There is resistance located over there and also upper band of bearish channel in which index moves for a year.
