Breaking News
Investing Pro 0

Weekly Market Brief: FTSE, DAX, Nasdaq 100, S&P 500 And Dow

By Francesco BergaminiMarket OverviewNov 06, 2022 05:23AM ET
www.investing.com/analysis/weekly-market-brief-forecasts-for-the-ftse-dax-nasdaq-100-sp-500-and-dow-200631999
Weekly Market Brief: FTSE, DAX, Nasdaq 100, S&P 500 And Dow
By Francesco Bergamini   |  Nov 06, 2022 05:23AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
NDX
+3.56%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
UK100
+0.76%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
US500
+1.47%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DJI
-0.11%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DE40
+2.16%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

FTSE 100

The FTSE 100 index had a week up by + 4.07%. For the coming week we are in favour of a retracement in the area of ​​7,100-7,200.

Indicators

Very positive week for the British index which brings back the price close to the strong resistance at 7,400.

Daily chart: FTSE 100
Daily chart: FTSE 100

We can see that the price ended the week just below the 200-day moving average (blue line) and we don't believe there is strength and conditions needed to move further up.

MACD and RSI are now very extended to the upside with the latter in overbought territory: looking at previous price action, this extension makes us lean towards a short-term bearish scenario.

In addition, we believe that the exit from the Bollinger Bands is a further element of caution and a sign of a price that is now very extended to the upside and with high downside potential.

We are bearish on the FTSE 100 and await substantial declines before considering long setups.

  • Support at 7,000
  • Resistance at 7,400

FTSE MIB 

The FTSE MIB index had a week up by + 3.34%. For the coming week we are in favour of consolidation in the area of ​​22,300.

Indicators

A very positive week for the FTSE MIB which brings the Italian index close to the 200-day moving average (blue line) and strong resistance at 23,600.

Daily chart: FTSEMIB
Daily chart: FTSEMIB

If in the medium to long term this price action is certainly positive, in the short term we believe that now the price is very extended to the upside and that it may need significant reversals before keep proceeding upward.

MACD and RSI are now as well very extended to the upside with the latter in overbought territory (a scenario that has not happened since November 2021).

We are bearish on the FTSEMIB as we believe price swing and internal indicators are now overbought, shifting the weight in favour of pulls back rather than further stretches.

An initial close below the 9-day moving average (red line) could pave the way for short-term downside.

  • Support at 21,500
  • Resistance at 23,600

DAX 40 

The DAX index had a week up by + 1.63%. For the coming week we are in favour of consolidation in the area of 12,800.

Indicators

Positive week for the German index which substantially consolidates the rises of the past few weeks. The price is now close to the 200-day moving average (blue line) and we believe the conditions are not in place to support further rising.

Daily chart: DAX
Daily chart: DAX

Despite a positive increase in volumes, MACD and RSI are now very extended to the upside with the latter in the overbought area (and slight negative divergence with the price).

The wide trading range 12,200-13,600 continues to be respected since June 2022 and it is desirable to expect a price retracement.

We are bearish on the DAX and in favor of possible short-term weakness.

  • Support at 12,200
  • Resistance at 13,600

S&P 500

The S&P 500 index had a week down by -3.35%. For the coming week we are in favour of a possible consolidation in the area of 3,7000.

Indicators

Negative week for the US index which brings back the price close to the narrow September-October's trading range.

The overall scenario is of strong indecision as we have a consolidating price but internal indicators that are alluding to possible declines: MACD is close to a bearish crossover and the RSI continues to remain below 50.

We remain neutral on the S&P 500 given the uncertain scenario: to see sustainable rises we must first have an alignment between internal indicators and price action.

  • Support at 3,550
  • Resistance at 3,900

Nasdaq 100

The Nasdaq 100 index had a week down by -5.97%. For the coming week we are in favour of a consolidation in the area of 10,600 - 11,000.

Indicators

Week of significant falls for the Tech index which brings the price back to the lows of September 2022. The 50-day moving average (yellow line) continues to be a strong dynamic resistance that continuously blocks attempts to the upside.

Daily chart: NASDAQ 100
Daily chart: NASDAQ 100

MACD and RSI also describe a negative scenario with the first close to a further bearish crossover. At the same time, the RSI is in a slight positive divergence with the price.

We remain neutral on the NASDAQ 100, the slope of the moving averages and the negativity of the internal indicators suggest further declines. At the same time, the strong downward extension can give rise to quick changes of direction: it is better to wait for a clearer and more linear overall scenario.

  • Support at 10,400
  • Resistance at 12,000

DOW JONES

The Dow Jones Industrial Average index had a week down by -1.40%. For the coming week we are in favour of a retracement in the area of 31,500.

Indicators

Negative week that substantially consolidates the price after the strong stretches of the past sessions. The price is now close to the 200-day moving average and we do not believe the conditions are in place to continue the most recent hikes.

Daily chart: DOW JONES
Daily chart: DOW JONES

MACD and RSI are quite extended to the upside and looking at past swings the risk / reward is now in favour of a possible reversal rather than a further extension.

At the moment we remain neutral / bearish on the DOW JONES and looking for for the price to retrace to more interesting levels: possibly in the area of 31,000 - 30,500.

  • Support at 30,170
  • Resistance at 33,250
Weekly Market Brief: FTSE, DAX, Nasdaq 100, S&P 500 And Dow
 

Related Articles

Weekly Market Brief: FTSE, DAX, Nasdaq 100, S&P 500 And Dow

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Randall Paul
Randall Paul Nov 07, 2022 11:44PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
what a fantastic late rally on the dow. it was relentless but curious that the volumes were light. I agree. but for tge futures I am still in the 33000 camp before a correction and your target for the dow is reasonable
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email