The IndeX Files 16-06-2020

<h2>Second Wave Fears Foil Equities Rally</h2>
<p>Global equities benchmarks have begun the week with an offered tone as growing concerns over a potential second wave of the virus in the US take focus. With mass reopening well underway across the US, many states have been reporting a steady increase in infection rates over recent weeks fuelling fears that the virus is seeing a second spike. States such as Florida, Texas, California, Arkansas and other have all noted fresh increases in virus numbers over recent weeks with Florida last week reporting its highest number of cases since the crisis started. As summer approaches and more local economies reopen investors are now fearing that a second wave of the virus will emerge, which could risk toppling the US economy is lockdown measures need to be reintroduced. The US Treasury Secretary has so far ruled out any return to nationwide stay-at-home measures given the vast economic damage suffered as a result. However, if the death toll starts to surge again, this narrative could change and lockdowns would certainly be reintroduced on a state-by-state basis at the very least.</p>
<p>The Fed warned last week that the US economic recovery will not be a straightforward process and while last month’s jobs number was certainly encouraging, the return to pre-virus employment levels will not be quick or easy. Fed chairman Powell warned that unemployment is likely to stay elevated for some time to come and rates are not expected to be lifted until at least 2022.</p>
<h2>Technical Views</h2>
<p><strong>DAX (Bullish above 113276.1)</strong></p>
<p>From a technical viewpoint. The DAX continues to reverse lower within the bullish channel from year to date lows. Price has now broken back below the yearly pivot and is fast approaching the rising trend line support and yearly S1 at 11321.76. While this level holds, bullish bias remains.</p>
<p><img class="aligncenter size-full wp-image-45357" src="http://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-16-at-09.21.40.png" alt="" width="2748" height="1394" srcset="https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-16-at-09.21.40.png 2748w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-16-at-09.21.40-300×152.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-16-at-09.21.40-1024×519.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-16-at-09.21.40-768×390.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-16-at-09.21.40-1536×779.png 1536w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-16-at-09.21.40-2048×1039.png 2048w" sizes="(max-width: 2748px) 100vw, 2748px" /></p>
<p><strong>S&amp;P500 (Bullish above 2980)</strong></p>
<p>From a technical viewpoint. The S&amp;P has reversed from above the 3115.75 level and has broken down below the rising trend line from 2020 lows. Price is now retesting the yearly and monthly pivots around the 2980 mark. While this support region holds, bias remains bullish. Below here, the next key support to watch is the 2697 region.</p>
<p><img class="aligncenter size-full wp-image-45356" src="http://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-16-at-09.20.45.png" alt="" width="2758" height="1404" srcset="https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-16-at-09.20.45.png 2758w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-16-at-09.20.45-300×153.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-16-at-09.20.45-1024×521.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-16-at-09.20.45-768×391.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-16-at-09.20.45-1536×782.png 1536w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-16-at-09.20.45-2048×1043.png 2048w" sizes="(max-width: 2758px) 100vw, 2758px" /></p>
<p><strong>FTSE (Bullish above 6000)</strong></p>
<p>From a technical viewpoint. The FTSE has broken down below VWAP now and is testing the monthly pivot at 6000, with the bullish channel support line just below. While this level holds, focus remains bullish in the near term. A break here however, will put focus on the 5358 as the next main support level.</p>
<p><img class="aligncenter size-full wp-image-45358" src="http://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-16-at-09.22.54.png" alt="" width="2768" height="1358" srcset="https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-16-at-09.22.54.png 2768w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-16-at-09.22.54-300×147.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-16-at-09.22.54-1024×502.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-16-at-09.22.54-768×377.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-16-at-09.22.54-1536×754.png 1536w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-16-at-09.22.54-2048×1005.png 2048w" sizes="(max-width: 2768px) 100vw, 2768px" /></p>
<p><strong>NIKKEI (Bullish above 21060.8)</strong></p>
<p>From a technical viewpoint. The NIKKEI has fallen back below the yearly pivot at 22232.7 and is fast approaching the rising trend line support and monthly pivot at 21060.8. While this level holds, near term bias remains bullish, supported by VWAP. A break of this level, however, will put focus on a test of the 20461.1 support next.</p>
<p><img class="aligncenter size-full wp-image-45359" src="http://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-16-at-09.26.31.png" alt="" width="2766" height="1396" srcset="https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-16-at-09.26.31.png 2766w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-16-at-09.26.31-300×151.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-16-at-09.26.31-1024×517.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-16-at-09.26.31-768×388.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-16-at-09.26.31-1536×775.png 1536w, https://blog.tickmill.com/wp-content/uploads/2020/06/Screenshot-2020-06-16-at-09.26.31-2048×1034.png 2048w" sizes="(max-width: 2766px) 100vw, 2766px" /></p>
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