Policy Easing Brings New Highs in Dax 30, S&P 500 and Stock Indices

This week, the bullish trend in stock markets resumed, with the DAX 40 and S&P 500 indices continuing to make record closes. Yesterday, this momentum accelerated further following the Federal Reserve’s dot plot, which indicated the expectation of three rate cuts for 2024. Today, they opened with a bullish gap, which means continuing the uptrend further.

S&P 500 Daily Chart – The 20 SMA Keeping the Trend Bullish

As of the latest data, the German index Dax 40 is trading 160 points higher at 18,173 points, the Dow Industrial Average is trading up 414 points or 0.60% today at 39,830 points. The S&P 500 index has increased by 3-0 points or 0.60% to reach 5,254. Similarly, the NASDAQ index is up by 196 points or 1.22%, currently standing at 16,55 points.

These gains reflect investor optimism and confidence in the continued economic recovery, supported by the Federal Reserve’s accommodative monetary policy stance yesterday, while today the Swiss National Bank delivered an unexpected rate cut. The Bank of England also took a dovish turn, which is keeping risk sentiment buoyed in stock markets. The record closes yesterday in the major indices and the bullish continuation today suggests that market participants are optimistic about future earnings prospects and overall economic growth.

Yesterday’s breakout of the S&P 500 index over the critical resistance level of 5,200 points marks the end of the previous modest bullish wave, as depicted in the daily S&P 500 index chart above. This breakout has heightened positive pressure on the index, leading to intensified upward momentum. Breaking above the resistance level of 5,200 suggests a significant bullish development in the market, indicating a potential continuation of the upward trend toward 5,300 points and further as we enter April.

DAX 40 Chart – New Record Highs Keep Coming

The German index Dax 40, has also been supported by the 20 SMA (gray) on the H4 chart, and today it opened with a bullish gap higher and continued higher, indicating that the buying momentum is picking further pace. Now the DAX index is heading for 19,000 points and possibly 20,000.

S&P 500 Live Chart