Global Stock Markets Poised to Bounce in Week Ahead

Global Stock Markets Poised to Bounce in Week Ahead

Talking Points:

  • SP 500 rebounded impressively on Friday, look for follow-through next week
  • DAX should get a lift to start week; German, Eurozone GDP figures on deck
  • FTSE found some support, should hold if risk trends reverse

For a longer-term outlook on major markets and currencies, see the Q1 DailyFX Forecast.

SP 500

This coming week the economic calendar is fairly light on data. ‘High’ impact data events arrive on Wednesday with the release of CPI and Advance Retail Sales, then on Friday we have the release of U of M Sentiment. Risk trends will continue to be the dominant theme.

The SP 500 tagged the 200-day MA and reversed hard on Friday after what has been a surprisingly sharp decline from record highs. As long as there isn’t a closing print below the low on Friday at 2532 the market is poised to bounce and perhaps violently. The first level of resistance arrives at 2727, the Wednesday high. Volatility will remain high for the foreseeable future, making it a short-term traders’ market.

SP 500: Daily

Article source: