Figure 3: The SP 500 on a daily chart
As with the NASDAQ index, CDEF points here indicate a bullish constellation of higher highs and higher lows. The price reached strong resistance at 61.8% Fibo of the overall decline between AB points and closed above it. At the same time, there is 78.6% Fibo of the movement for the month of March.
Also here, for the idea of a potential trend reversal, it is appropriate to wait for a confirmation, which could be the breaking of the trend line between the DE points downwards.
is in the range 3 107– 3 140.
It is also possible to consider the moving average of SMA 100 and SMA 200 as a resistance, which is currently around 3000. At the same time, there is the upper edge of the hidden bearish gap, which was created on March 6, 2020.
is in the zone 2 720 - 2 740.
The DAX index moved upwards, similar to US indices, although it strengthened less than the NASDAQ or SP500, due to uncoordinated EU fiscal stimulus. The index is currently below SMA 100 and SMA 200 moving averages. In addition, SMA 100 has already fallen below SMA 200 since April 15, 2020, which is a strong bearish signal, see Figure 4.