Daily Stock Indices Technical Trend Bias/Key Levels (Thurs 31 Jan)

Fed "Put" in play. Watch 2700/2710 key medium-term resistance on S&P 500.

Stock Indices (CFD) – The Fed “Put” in play but S&P 500 approaching 2700/10 key medium-term pivotal resistance

  • US SP 500 – Trend bias: Sideways. The Index has rallied post FOMC after the Fed changed its tonality from “a pace of gradual increases in interest rates” to “patience in hiking interest rates” which suggests that the door has opened for a interest cut if the global economy slows down further. The  Index has surpassed the minor range resistance at 2676 in place since 19 Jan 2019. Right now, it is approaching the key medium-term pivotal resistance at 2700/10 (click here for a recap on our weekly outlook) with extreme overbought readings seen in the both the 1 & 4-hour Stochastic oscillators). Maintain a neutral stance in short-term for now between 2700/10 and 2664 (the pull-back support of the former minor descending trendline from 19 Jan 2019 swing high + Fibonacci retracement cluster). A break below 2664 sees a slide for a retest on 2618 (23/24 Jan 2019 minor swing lows). On the flipside, a daily close above 2710 opens up scope for a further squeeze up to target the 2815 key long-term pivotal resistance.
  • Japan 225 – Trend bias: Sideways. Despite a strong performance seen in the benchmark U.S. stock indices. The Japan Index has failed to break above its 19 Jan 2019 swing high of 20947 in line with a weaker USD/JPY that has broken below the 109.00 short-term range support. Mix elements for now, thus prefer to turn neutral between 20950 and 20660 (the minor ascending trendline from 29 Jan 2019 low). A break below 20660 sees a slide back to retest the minor range support of 20380 in place since 23 Jan 2019. On the flipside, a clearance above 20950 sees a further push up to test the 21020 key medium-term pivotal resistance.
  • Hong Kong 50 - Trend bias: Sideways. The Index has staged the expected push up towards the 28000 key medium-term resistance (printed a current intraday high of 27987 in today, 31 Jan Asian session) but no clear signs of bullish exhaustion yet. Prefer to turn neutral now between 28000 and 27600 (29 Jan 2019 former minor swing high + minor ascending trendline from 03 Jan 2019 low). A break below 27600 sees a slide back to retest 27400 and even 27030 minor supports next. On the flipside, a daily close above 28000 opens up scope for an extension of the corrective upmove towards 29100 (lower limit of the key long-term pivotal resistance).
  • Australia 200  - Trend bias: Sideways. The Index has pushed up as expected and it is now approaching the 5950/6000 key medium-term range resistance. No clear bullish exhaustion signals yet, prefer to turn neutral first between 5920 (25 Jan 2019 minor swing high) and 5880. A break below 5880 sees a slide to retest the 5830 minor swing low areas of 23/24 Jan 2019 in the first step. On the flipside, a break above 5920 sees a further squeeze up to test the 5950/6000 medium-term range resistance.
  • Germany 30 – Trend bias: Sideways. The recent slide seen has managed to hold above the minor ascending trendline in place since 26 Dec 2018 low, now acting as a support at 11130. Mix elements now, prefer to have a neutrality stance between 11310 (25 Jan 2019 minor swing high + 38.2% Fibonacci retracement of the previous decline from 22 May 2018 high to 26 Dec 2018 low) and 11130. A break below 11130 sees a further slide towards the 11000 key medium-term range support set for this week. On the flipside, a clearance above 11310 opens up scope for a further rally towards 11540 key medium-term range resistance (also the descending trendline in place since 14 Jun 2018 high).

   *Levels are obtained from City Index Advantage TraderPro platform


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