S&P 500 and DAX Trading Levels – Risk Aversion Dominates Investors
Arslan Butt • 1 min read
The global stock markets fell dramatically on Monday as the risk aversion continued to dominate the market. Investors continue to respond to the trade war fears, with tech stocks on the radar ahead of a decision on a ban on Chinese investment into the U.S. tech companies.
Moreover, the sell-off in the global stock markets came out in an exchange of threats between the U.S. government and the Eurozone over tariffs on automobile imports.
The VIX (Volatility Index) which measures the level of risk in the market soared to 17.33 from 15 this week. This shows raising risk aversion and this is keeping the investors out of the stock market. The VIX is negatively correlated to the stock markets. The higher the VIX value the higher level of uncertainty there is and as you know, uncertainty is something investors don’t like.
In order to cope up with this situation, we have spotted the weekly trading levels. I hope these will help you throughout the week to place high probability trades.
S&P 500 – SPX500- Trading Levels
Support Resistance 2745.54 2769.84 2738.04 2777.34 2725.89 2789.49 Key Trading Level: 2757.69
DAX – GER30 – Trading Levels
Support Resistance 12483.74 12873.34 12363.4 12993.68 12168.6 13188.48 Key Trading Level: 12678.54