FTSE 100, DAX 40 and S&P 500 Head Back Towards Record Highs

Major Indices Roundup:

• FTSE 100 stretches out ahead of prominent BoE speeches
• DAX hints at shorter-term downside pressure
• S&P 500 eases but remains at elevated levels – Nvidia reports earnings on Wednesday
• Indices currently evolve as trending markets but comes a point when this may change. Discover the different market conditions and how to effectively approach them:

FTSE 100 tries to reach last week’s record highs

The FTSE 100 is gunning for last week’s record high at 8,479 with the psychological 8,500 mark remaining in sight as several Bank of England (BoE) members will be speaking in the course of this week.

Upside pressure will be maintained while last week’s low at 8,393 underpins on a daily chart closing basis.

FTSE 100 Daily Chart

Source: ProRealTime, prepared by Axel Rudolph

DAX 40 consolidates below record high

Last week the DAX 40 hit a record high close to the minor psychological 19,000 mark before slipping and forming a bearish engulfing pattern on the daily candlestick chart which was followed by a drop to Friday’s low at 18,627. This increased the likelihood of at least a short-term bearish reversal being seen over the coming days, even though on Monday a minor recovery rally is currently taking place.

Since last week’s high hasn’t been accompanied by a higher reading of the daily Relative Strength Index (RSI), negative divergence can be seen. It may lead to a several hundred points sell-off taking the index back to its April-to-May uptrend line at 18,464. For this scenario to become more probable a fall through last week’s low at 18,623 would need to be seen, though.

DAX Daily Chart

Source: ProRealTime, prepared by Axel Rudolph

S&P 500 eyes last week’s record high

The S&P 500’s rally from its early May low has taken it to last week’s record high at 5,326 before pausing amid Fed comments making it clear that the battle against inflation hasn’t been won yet. Further Fed commentary by several voting members is in the pipeline for Monday.

The previous record high made in April at 5,274 acted as support on Friday when the S&P 500 dipped to 5,284 before heading back up again.

As long as the accelerated uptrend line at 5,286 holds, upside pressure should remain in play.

Were a new all-time high to be made, the 5,350 region would be in focus.

S&P 500 Daily Chart

Source: ProRealTime, prepared by Axel Rudolph