Last week was great for bulls. Even the biggest optimists didn’t see that coming. There was some uncertainty on the markets connected with central banks meetings, but investors now believe that monetary policy actions will help stocks. On Friday publication of US nonfarm payrolls was much better than expected (242k vs 190k) and earlier weak data was corrected up. Looking at fact that all major central banks are loosening their policy there is hope that FED will wait with hiking rates.
On Thursday there will be ECB meeting and situation is quite clear – current policy do not give any effect and inflation is still, so loosening policy is almost certain.
DAX D1: Bullish offensive is seen on the chart. Bullish channel is broken, index was moving in it for more than 3 months. Last Friday resistance at 9,110 pts was tested but it is not broken so far.
If bulls will manage 9,110 pts level it will give a signal of going on further highs and lows on D1 and W1 charts. After breaking this level next major resistances will be at 10,180 pts, 10,550 pts. If bearish sentiment will come back key support is at 9,330 pts level and after breaking it next one is in 8,950-9,100 pts area.
S&P500 D1: In the end of last week bulls managed to break 1,990 pts resistance, tested 2,009 pts end ended on 1,999.99 pts. Break above 2,020 pts will show strength of bulls and be a good forecast for the future.
