Major indices are up today regaining some lost ground from last week. The CAC 40 saw Services PMI increase to 51.3 from 48.3 last month. While the Composite PMI increased to 50.5 from 48.3.

The DAX 40 is up 0.23%, the FTSE MIB is up 0.44% and the CAC 40 is up 0.15%. Within the CAC 40 the largest movers to the upside are:

• Teleperformance +3.39%
• AXA +1.53%
• ArcelorMittal +1.36%

And the largest movers to the downside are:

• Soc Gen -1.25%
• Edenred -1.16%
• Hermes -0.70%

The market has been jittery the past days with Macron talking about getting French boots on the ground in Ukraine. NATO involvement with the Russian conflict could spark an escalation, and the market has been concerned with such a narrative.

With Macron’s bellicose narrative subsiding the market is back to considering fundamentals. Today’s PMI data is a sign of an expanding economy and should set the CAC Index for a bullish session.

Technical View

The day chart below for the CAC 40 shows the market has made a significant correction within the ongoing bullish trend. The market has found some support within the Ichimoku cloud. The previous 2 candles could be marking a pivot point to regain the bullish trend.

If the market continues to rally, the next resistance level would be at 8150 (blue line), To the downside, the market will find support at 7852 (black line). To consider the market in a bearish trend, we would need to see the market break below the black line and the Ichimoku cloud.