The IndeX Files 23-06-2020

<h2>Equities Recover Recent Losses</h2>
<p>Global equities benchmarks have managed to regain composure this week, with most indices working hard to retrace losses following selling into the end of last week as the market responded to various negative inputs for risk sentiment. Reports of clashes between Chinese and Indian troops on the shared border last week raised fears of conflict, weakening risk appetite. News that Apple will close 11 US stores in response to a fresh rise in COVID-19 infections further spooked investors, seeing heavy selling into the close on Friday.</p>
<p>At the start of this week, however, risk sentiment has begun to rebound firmly as US official downplayed talk of a second wave of the virus and instead turned the focus onto the potential for a fresh stimulus package from the government. Trump confirmed last week that his team are working on a new deal which is thought to include up to $1 trillion in infrastructure funding along with further support for the unemployed. The Fed has been stressing the need for further support and equities traders have been keen to take the ball and run with it ahead of any details being announced.</p>
<h2>Technical Views</h2>
<p><strong>DAX ( Bullish above 11200)</strong></p>
<p>From a technical viewpoint. The DAX found support at a test of the bullish channel low, just ahead of the monthly pivot at 11200, and has now broken back above the yearly pivot at 12340.75, keeping the near term bias firmly bullish. With VWAP supportive, the 12916.11 resistance is the next upside target for bulls.</p>
<p><img class="aligncenter wp-image-45781 size-full" title="The IndeX Files 23-06-2020" src="http://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-23-at-09.41.22.png" alt="The IndeX Files 23-06-2020" width="2770" height="1584" srcset="https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-23-at-09.41.22.png 2770w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-23-at-09.41.22-300×172.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-23-at-09.41.22-1024×586.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-23-at-09.41.22-768×439.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-23-at-09.41.22-1536×878.png 1536w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-23-at-09.41.22-2048×1171.png 2048w" sizes="(max-width: 2770px) 100vw, 2770px" /></p>
<p><strong>S&amp;P500 (Neutral, bullish above 3115.75)</strong></p>
<p>From a technical viewpoint. The S&amp;P continues to struggle around the 3115.75 level. Following support at the retest of the yearly pivot just below 3000, price has since failed at a retest of the broken bullish trend line and remains below currently. While below the 3115.75 level, risks of a correction lower continue to build.</p>
<p><img class="aligncenter wp-image-45780 size-full" title="The IndeX Files 23-06-2020" src="http://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-23-at-09.35.29.png" alt="The IndeX Files 23-06-2020" width="2782" height="1578" srcset="https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-23-at-09.35.29.png 2782w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-23-at-09.35.29-300×170.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-23-at-09.35.29-1024×581.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-23-at-09.35.29-768×436.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-23-at-09.35.29-1536×871.png 1536w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-23-at-09.35.29-2048×1162.png 2048w" sizes="(max-width: 2782px) 100vw, 2782px" /></p>
<p><strong>FTSE (Bullish above 6000)</strong></p>
<p>From a technical viewpoint. The FTSE continues to rally within the bullish channel, supported by a recent test of VWAP. However, bearish divergence on momentum studies flags reversal risks and a failure to break back above the 6543.4 level in the near term, raises the risk of a further test of the monthly pivot below at 6000.</p>
<p><img class="aligncenter wp-image-45779 size-full" title="The IndeX Files 23-06-2020" src="http://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-23-at-09.33.04.png" alt="The IndeX Files 23-06-2020" width="2792" height="1572" srcset="https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-23-at-09.33.04.png 2792w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-23-at-09.33.04-300×169.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-23-at-09.33.04-1024×577.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-23-at-09.33.04-768×432.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-23-at-09.33.04-1536×865.png 1536w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-23-at-09.33.04-2048×1153.png 2048w" sizes="(max-width: 2792px) 100vw, 2792px" /></p>
<p><strong>NIKKEI (Bullish above 22276.2)</strong></p>
<p>From a technical viewpoint. The NIKKEI continues to rally off the rising trend line support extending from 2020 lows. Price is now back above the yearly pivot at the 22276.2 level, keeping focus on a break back above the 23273.6 highs in the near term, with VWAP still supportive.</p>
<p><img class="aligncenter wp-image-45778 size-full" title="The IndeX Files 23-06-2020" src="http://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-23-at-09.30.12.png" alt="The IndeX Files 23-06-2020" width="2802" height="1582" srcset="https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-23-at-09.30.12.png 2802w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-23-at-09.30.12-300×169.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-23-at-09.30.12-1024×578.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-23-at-09.30.12-768×434.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-23-at-09.30.12-1536×867.png 1536w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-23-at-09.30.12-2048×1156.png 2048w" sizes="(max-width: 2802px) 100vw, 2802px" /></p>
<p><strong><i>Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.</i></strong></p>
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