Markets turned back up on Friday Stock market OMX S30 (1368,70) rose by 1,09 % on Friday and thus recovered some of the losses from Thursday. This also means that the OMXS30 is back above the 200 day moving average and the index looks marginally better than on Thursday. In the short term the index may go as far up as the 1380 level and confirm the level from which the downturn began. If the index does turn back down during the week, which we see as the most likely scenario, then the next strong support level is most likely where the market will head. This means that we will see a move towards the 1320 level in the next 2 – 3 weeks. DAX 30 (9195,68) may start the week on a positive note as the US market showed strength on Friday. The US market closed up by 1,12 % on Friday. The DAX30 should primarily rise to the 9400 level short term. We still expect the market to head down to the 8900 – 9000 level in the near future. S&P 500 (1967,90) gained some traction already on Thursday evening and continued to rise during Friday. The US market rose by 1,12 % on Friday. For the upcoming week the negative technical view remains and the upturn that we witnessed last week was in all likelihood just a rebound ahead of a continued downtrend towards the 1900 level. OMX C20 CAP (799.04) closed up by 1.3 %. The market took a breather after the recent falls and closed right below the 800-level, which represents a weak resistance level. Also, in Japanese technical analysis-terminology the market produced a so called “inside day”, which signals a pause in the prevailing trend. It would come as no surprise if the next couple of days would show a sideways/upwards move before the downtrend continues. Important news that may affect the index The weeks will start slowly with not much happening on the macro front. We expect the market to be driven more by the upcoming quarterly reports than by macro numbers during the coming weeks. Technical levels OMXS30 Trend: Short term falling, medium term falling, long term neutral. Support: 1380 Resistance:- DAX30 Trend: Short term falling, medium term falling, long term falling. Support: 9000, 9400 Resistance: 10000 S&P 500 Trend: Short term falling, medium term falling, long term rising. Support: 1900 Resistance: - Index recommendation No new positions today. We are however ready to go short in the markets should the indices rise a bit more. We recommend a short position on the S&P 500 around 1975 – 1980 with a stop loss just above 2000.
Posted on: Mon, 06 Oct 2014 08:13:54 +0000
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