Bulls cannot say last week was successful. As far as S&P500 came back just 4 pts below 2,100 pts resistance, DAX failed totally. Not only German bulls didn’t manage to keep 10,100 pts support, they also are back to 9,800 pts support.
Finally a week of US FED decision. It can form indices for a long time. The decision about interest rates and investors reaction will be crucial this week.
S&P500
Daily chart
Last week US index was close to historical highs, however in the end of week it decreased. It was good week for S&P500 but it turned back on Friday when it decreased below 2,100 pts support and ended week with score -0,92%. We have to notice that S&P500 is still really high and only one good session is needed to hit new historical highs. Decrease to 2,040 pts area will be bad sign and it could mean change of sentiment.
Weekly chart
Weekly chart doesn’t look good. Huge upper shadow from bearish candle in such important place – 2,100 pts. Considering FED meeting ahead the chance of cutting rates is low. We have to wait till Wednesday, before that sessions can be flat.
DAX
Daily chart
The situation here is much worse. More than two weeks of fight above 10,100 pts support was destroyed during Friday’s session. Another time DAX landed in important support area at 9,800 pts and breaking this level would be the worst possible scenario for bulls. The volume is clearly higher than during last two bearish sessions.
Weekly chart
On this chart we can see worse situation of German index during last two weeks but on the other side support is still safe. Unfortunately for German bulls bearish channel is still working. Only breaking 10,800 pts level will change long term situation.
