Last week investors were surprised by hawkish FOMC minutes. The day before that the probability of hiking rates in June was very low. However according to minutes some members are convinced that this is time for another hike. It caused high volatility on the indices during Thursday’s session and then rebound on Friday. This week we will wait for Friday’s Janet Yellen conference. She can give some more hints about eventual hike in June.

S&P500

Weekly chart

Bulls managed to defend 2,020-2,040 pts support again. On the other side that was another candle with lower high and low. This is bearish setup. However there is no breakthrough on this time frame – 2,100 pts resistance is safe and the same is with support. Breaking one of these levels will give investors more hints.

Daily chart

We can set bearish channel on this TF, SP500 is inside it for more than month. If bulls will manage to break above upper band in 2,070 pts area it can mean end of correction. Last week’s candles look positive for the index. On Thursday Pin Bar showed up on important support. Bulls have to break bearish channel and then attack 2,100 pts area.

DAX

Weekly chart

In a longer term situation looks quite bearish and there is really strong resistance at 10,700 pts. Three last weekly candles created Inside Bar. We have to wait for a break up or down from it to make proper decision.

Daily chart

On this time frame we can see that DAX was trying to break below channel in which index moves since February. However support in 9,800 pts area stopped bears and on Friday index came back inside bullish channel. Important levels: 9,800 pts and 10,100 pts.