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Weekly Market Brief: FTSE, DAX, NASDAQ 100, S&P 500 and Dow

By Francesco BergaminiMarket OverviewDec 11, 2022 06:52AM ET
www.investing.com/analysis/weekly-market-brief-ftse-dax-nasdaq-100-sp-500-and-dow-200633342
Weekly Market Brief: FTSE, DAX, NASDAQ 100, S&P 500 and Dow
By Francesco Bergamini   |  Dec 11, 2022 06:52AM ET
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FTSE 100

The FTSE 100 index had a week down by -1.05%. For the week ahead, we favor a retracement to the 7,400 area.

Indicators

A negative week for the British index, as it almost seems to want to repeat August's setup.

Daily chart: FTSE 100
Daily chart: FTSE 100

The price finally broke below the 9-day average (red line), a strong dynamic resistance since October.

We believe this break is important, especially after a long upside phase: we could expect a short back-test of the 9MA and then, in our opinion, begin a downward phase.

MACD and RSI have started an initial reversal and mirror price action.

We are bearish on the FTSE 100 as we believe risk/reward is still in favor of further downsides: the short-term target remains the 50-day average (yellow line) today at 7,200.

  • Support at 7,150
  • Resistance at 7,600

FTSE MIB

The FTSE MIB index had a week down by -1.40%. We favor a retracement to the 23,700-23,500 area for the week ahead.

Indicators

A negative week for the Italian index, which saw the break of the narrow trading range in place since the beginning of November.

Daily chart: FTSEMIB
Daily chart: FTSEMIB

This move could be an early sign of further short-term bearish pressure. MACD and RSI are also slowing down and in line with the price.

After these initial declines, it is likely to expect a very brief recovery of momentum and then, in our view, proceed further downwards.

We are bearish on the FTSEMIB: November's strong stretches have only begun a retracement phase, and we believe a plausible short-term target is the 50-day average, now at 23,100.

  • Support at 22,500
  • Resistance to 24,850

DAX 40

DAX index had a week down by -1.09%. We favor a progressive retracement to 13,900 for the week ahead.

Indicators

A bearish week for the German index, which stays within the narrow trading range, started in November 2022.

Daily chart: DAX
Daily chart: DAX

The few closes below the 9-day average (red line) seem to herald a possible downward trend reversal.

MACD and RSI are slowing down in line with the price action.

We are bearish on the DAX and in favor of possible short-term downward pressure: we believe the trend reversal has only just begun, and a possible short-term target is the 50-day average (yellow line), now at 13,600.

  • Support at 13,100
  • Resistance at 14,550

S&P 500 

The S&P 500 had a week down by -3.37%. We favor a possible consolidation in the 3,900 area for the week ahead.

Indicators

A negative week for the US index, which sees the price at the November levels'.

Daily chart: S&P 500
Daily chart: S&P 500

The price action seems to be forming a possible “head and shoulders” setup, where we should, in theory, see a slight recovery followed by a stronger bearish reversal to at least 3,800 - 3,850.

MACD and RSI are retracing but continue to hold in positive territory. We remain neutral on the S&P 500 and prefer to wait for further market reversal.

  • Support at 3,750
  • Resistance at 4,100

NASDAQ 100 (NDX)

The NASDAQ 100 index had a week down by -3.59%. We favor consolidation in the 11,500 area for the week ahead.

Indicators

A negative week for the Tech index keeps the price substantially unchanged from November.

Daily chart: NASDAQ
Daily chart: NASDAQ

The price is currently stuck between the 9 (red line) and 50 (yellow line) day averages, and only the break of one of these two levels will lead to more pronounced short-term volatility.

MACD and RSI are flat, reflecting a hesitant price action.

We are neutral on the NASDAQ 100, but with bearish expectations, a recovery in US 10-year rates could lead to further market downward pressure.

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

DOW JONES (DJI)

The Dow Jones Industrial Average index had a week down by -2.77%. We favor an initial retracement to the 33,000 area for the week ahead.

Indicators

A bearish week on the industrial index saw the price holding above the strong intermediate support at 33,400 anyway.

Daily chart: DOW JONES
Daily chart: DOW JONES

MACD and RSI mark a notable slowdown, although still in positive territory. Looking at previous price action, we believe risk/reward still favors possible short- to medium-term downsides.

We remain bearish on the DOW JONES and that only a retest with the 50-day average (yellow line) could offer interesting setups.

  • Support at 31,200
  • Resistance at 34,500
Weekly Market Brief: FTSE, DAX, NASDAQ 100, S&P 500 and Dow
 

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Weekly Market Brief: FTSE, DAX, NASDAQ 100, S&P 500 and Dow

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