August 3rd – Quick Update On Global Stocks (S&P 500 and DAX)
Arslan Butt • 1 min read
Recently, the global stock markets began behaving strangely. I still remember about a month ago, there was a positive correlation amongst the U.S, European & Asian stock market indices. But, the scenario has changed a lot as they all move in opposite directions without showing any affiliation with each other.
S&P 500 // SPX
Starting with the U.S stock market index, S&P 500 is choppy trading with a lower range of $2465 and an upper range of $2485. Technically, it has completed 61.8% Fibonacci retracement at $2462 and the same level has also become a triple bottom. Tomorrow, U.S Nonfarm payroll, unemployment rate, and average hourly earnings can influence the U.S stock markets.
S&P 500 – 2 Hours Chart – Trading Range
Trade Plan: It will be nice to benefit from the choppy market by selling at $2485 and buying above $2465. If the market goes outside the range, I will be sharing the next plan.
DAX // GER30
In contrast, the German index is heading towards the south as the Europen Central Bank is expected to follow the footstep of the Federal Reserve. Yup, the market is trading with hawkish policy sentiment as soon, the ECB will announce tapering.
DAX – Descending Triangle Pattern
Technically, DAX has formed a descending triangle pattern which is supporting it at $12099. Above this, the DAX has a potential to recover until $12185. Whereas, the breakage above will lead it towards $12315.
Trade Plan: I will be looking to take a buy enter above $12100 to target $12170 with a stop below $12050.