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SPX and DAX Key Trading Levels – Risk Sentiments Remains Neutral

Posted Thursday, June 7, 2018 by
Arslan Butt • 1 min read

It Has Been A Slow Columbus Day On Wall Street.

The U.S. stock indices SPX, DJIA, and Nasdaq jumped slightly ahead of the G7 meeting on Friday. It’s quite confusing to see bullish moves in the stock markets while the risk sentiment remains completely mixed in the wake of G7 meeting, and the meeting between the U.S. and North Korea. In fact, the G7 countries aren’t really happy with the U.S. tariff decisions and there’s a great deal of uncertainty in the market. So, what exactly is causing buying in the stocks?

Stock market traders seem to have swallowed the broadly expected Fed June rate hike and have taken shield against further rate hikes later this year. In the past, a rate hike from the Fed would startle stock market investors into selling, but the market is all about sentiment these days.

Since the previous rate hike in March 2018, most of us already knew that another hike in rate is coming most probably in June 2018, which is why that’s already priced in. On June 13, the rise of 25bp will not be a surprise as we already know it’s going to happen and investors have already hedged themselves against high premium investments.

Let’s take a look at the weekly support and resistance levels for SPX and DJIA.