Forecasts FTSE 100, DAX 40, and S&P 500 on Fed rate cycle. Since the Fed looks no longer anticipated to raise rates at its June conference. the outlook likely negative
Forecast and Estimation for Major Stock Indices
Forecast of FTSE 100 is approaching the previous week’s top.
The US agreed on raising its debt ceiling, China prepared new measures to boost its real estate market. And the FTSE 100 rebounded from its 2-month at bottom @7,433 for the end of the past week. However, a higher-than-anticipated jobless rate of 3.7% along with restoring wage increases provided the US Fed the ability to take a break in June.
The top reached only a couple of weeks back at 7,660 needed to be surpassed on a daily graph. Ending base during the week for FTSE 100 bullish investors to be totally in charge. The mid-May lows points of 7,679 and 7,706 are located over it. And its 55- day(SMA), which is at 7,718, drifts.
The slips should be located at the bottom on May 26 at 7,556 or near the 200-day SMA near 7,718 zone.
Daily Graphical Estimation of FTSE 100
Source: IT Finance.com
DAX 40 squeezes out a peak of 16,080 in late May.
The DAX 40 is edging closer to its late-May peak of 16,080. After creating a possibly positive Hammer pattern on its weekly candlestick graph at the finish of the week prior. Amid an overall increase in risk-taking mood.
Minor support is only found at the high of last Wednesday at 15,928, which is before the May-to-June downtrend line, which was crossed at 15,900.
Daily Graphical Estimation of DAX 40
Source: IT Finance.com
Trading around Friday’s nine-month peak for the S&P 500
The S&P 500 surged reaching a nine-month top on Friday at 4,290. Which is not far from its top in August 2022 at 4,325.
As more market participants anticipate the Fed not raising rates, stock markets continue to search for quick offers. which are being supported by new attempts to stimulate China’s struggling real estate market. Around its mid-to-late May peaks around 4,234 and 4,214, any of the retracements could encounter strong support.
Daily Graphical Estimation of S&P 500
Source: IT Finance.com
S&P 500 is now in a medium-long range ascending channel. This demonstrates that buyers have purchased the index over time at increasing prices. Which is positive for the market. The index is currently trading within of a rectangle composed of resistance at 4372 and support at 3938. A clear breach through of any of these points signals the index’s new course. At 4300. The index is currently encountering resistance.
