The IndeX Files 14-04-2020

<h2>Equities Recovery Continues</h2>
<p>Global equities benchmarks are extending their recovery this week with asset markets across the globe trading broadly in the green.  Much of the recovery can be attributed to the large wave of central bank easing which has swept across markets in recent weeks.</p>
<p>The Federal Reserve has taken unprecedented steps to help backstop the US economy. Following rates being cut to record lows of 0.25% and a move into unlimited QE, the Fed has also announced a new $2.3 trillion loans operation which will provide relief for businesses as well as municipalities. The Fed has also announced that along with making purchases of corporate bonds for the first time, it will also be including junk bonds in its purchases.</p>
<p>The wide range of extreme measures being employed by the Fed highlights the incredible severity of the threat to the US (and global) economy. However, for now it seems that investors have been reassured by the Fed’s actions along with those of the other G10 central banks which have added to QE programs and cut rates.</p>
<p>In Europe, the first signs of a return to normality are starting to surface with industrial lock-downs in Italy and Spain being eased. France and the UK remain on lock-down, however. France announced this week it will extend its lock-down until May 11^th and the UK is waiting to hear its government’s decision on Thursday.</p>
<h2>Technical Views</h2>
<p><strong>DAX (Bullish above 10268.16)</strong></p>
<p>From a technical viewpoint. The DAX is making steady ground higher here, tracking within the recent bull channel. While price holds above the 10268.16 level, a test of the yearly S1 at 11309. 82 is the main objective for bulls.</p>
<p><img class="aligncenter wp-image-41724 size-full" title="The IndeX Files 14-04-2020" src="http://blog.tickmill.com/wp-content/uploads/2020/04/dax-1.png" alt="The IndeX Files 14-04-2020" width="1210" height="605" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/dax-1.png 1210w, https://blog.tickmill.com/wp-content/uploads/2020/04/dax-1-300×150.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/dax-1-1024×512.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/dax-1-768×384.png 768w" sizes="(max-width: 1210px) 100vw, 1210px" /></p>
<p><strong>S&amp;P500 (Bullish above 2684.25)</strong></p>
<p>From a technical viewpoint. Price is continuing its recent run of consecutive bullish days with the recovery having now broken back above the yearly S1 at 2684.25.  With the local bull channel supporting, a retest of the yearly pivot &amp; VWAP at 2966.25 is the main objective for bulls.</p>
<p><img class="aligncenter wp-image-41723 size-full" title="The IndeX Files 14-04-2020" src="http://blog.tickmill.com/wp-content/uploads/2020/04/es.png" alt="The IndeX Files 14-04-2020" width="1213" height="601" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/es.png 1213w, https://blog.tickmill.com/wp-content/uploads/2020/04/es-300×149.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/es-1024×507.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/es-768×381.png 768w" sizes="(max-width: 1213px) 100vw, 1213px" /></p>
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<p><strong>FTSE ( Bullish above 5456.5)</strong></p>
<p>From a technical viewpoint. The FTSE is trading above the monthly pivot (5750.8) as the recovery above 5456.5 continues. However, price action is still tracking within a rising wedge pattern for now which poses downside reversal risks in the near term.</p>
<p><img class="aligncenter wp-image-41722 size-full" title="The IndeX Files 14-04-2020" src="http://blog.tickmill.com/wp-content/uploads/2020/04/uk100.png" alt="The IndeX Files 14-04-2020" width="1222" height="609" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/uk100.png 1222w, https://blog.tickmill.com/wp-content/uploads/2020/04/uk100-300×150.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/uk100-1024×510.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/uk100-768×383.png 768w" sizes="(max-width: 1222px) 100vw, 1222px" /></p>
<p><strong>NIKKEI (Bullish above 20404.4)</strong></p>
<p>From a technical viewpoint. The NIKKEI is still trading above the 19076.1 level for now, keeping the near-term bias bullish. However, momentum is waning in the recovery and the rising wedge pattern highlights reversal risks if price can’t breach above the yearly S1 at 20404.4.</p>
<p><img class="aligncenter wp-image-41721 size-full" title="The IndeX Files 14-04-2020" src="http://blog.tickmill.com/wp-content/uploads/2020/04/nikkei-1.png" alt="The IndeX Files 14-04-2020" width="1224" height="609" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/nikkei-1.png 1224w, https://blog.tickmill.com/wp-content/uploads/2020/04/nikkei-1-300×149.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/nikkei-1-1024×509.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/nikkei-1-768×382.png 768w" sizes="(max-width: 1224px) 100vw, 1224px" /></p>
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