Despite the fact that the political conditions in the US are worsened, while the earnings seasons so far seems to be positive, the US equities continued to gain more grounds, posting fresh all-time highs during yesterday’s session.
The S&P500 spiked all the way to 2403, while DowJones Industrial Average is few points away from its 21169 all-time high, which likely to be seen once again later this week and Finally, Nasdaq composite index closed above 6120 for the first time.
Such move comes despite the fact that the Federal Reserve is expected to raise the Fed Fund rate once again by 25bps in June according to the Fed Fund Futures. The question remains now, will this optimism slip into Europe?
FTSE100 Above Major Moving Averages
FTSE 100 managed to post its longest rising stake since January of this year, following the French election results, as the risk of Frexit is now at 0%.
FTSE also managed to rise for the past four sessions and continued to rise today, trading above its entire moving averages, including the 200,100 and 50 DAY MA on the daily chart.
Such move seems to be impulsive, especially after it broke above its 50 DAY MA which stands at 7311, which turns into support area.
Such move would eliminate the possibility for another leg lower as a retracement. The recent correction in April actually bottomed out around 7100.
In the meantime, further gains are more likely. Yet, there is still some major resistance ahead, including 7363 followed by 7406 before trying to test its all-time highs around 7449.
On the downside view, any downside retracement is likely to remain limited for the time being above its 50 DAY MA as noted before. However, a breakthrough that MA would clear the way for a deeper retracement toward its 100 DAY MA at 7248 where buyers are likely to appear.
Read more: https://www.orbex.com/blog/2017/05/us-equities-time-high-europe-asia-follow/