The IndeX Files 21-04-2020

<h2>Equities Recovery Weakens</h2>
<p>Equities prices have taken a dip this week as the fundamental backdrop has shifted once again. Following some initial upside momentum in the wake of a wave of actions by G10 central banks the recovery has now stalled with most global indices retracing recent gains this week.</p>
<p>In Europe, the industrial lock-downs underway have started to be eased in Spain and Italy though both countries still look quite a way off totally reversing stay-at-home orders. In the UK, where the lock-down has been extended until May 7^th at the earliest, there is a great deal of debate over whether the lock-down should be continued past this point and, at the very least, it appears that only a small portion of the economy might be re-opened on May 7^th anyway.</p>
<p>In the US, President Trump announced this week that he will temporarily ban all immigration into the US as a means of “protecting” US workers. 22 million people have now filed joblessness in the US since the start of the lock-down there. With lock-downs continuing, the risk to the global economy is building further, fuelling expectations that central banks will need to intervene once again. However, with the Fed already well into uncharted territory now, in terms of its monetary policy response, remaining options are not clear.</p>
<h2>Technical Views</h2>
<p><strong>DAX (Bullish above 101.50)</strong></p>
<p>From a technical viewpoint. The DAX is still tracking within the bullish channel which has framed the recovery thus far and continues to hold above the monthly pivot at 10150. While price holds above here, continued upside is on watch with a retest of the yearly S1 at 11280.94 the next upside objective.</p>
<p><img class="aligncenter wp-image-42149 size-full" title="The IndeX Files 21-04-2020" src="http://blog.tickmill.com/wp-content/uploads/2020/04/dax-2.png" alt="The IndeX Files 21-04-2020" width="1209" height="607" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/dax-2.png 1209w, https://blog.tickmill.com/wp-content/uploads/2020/04/dax-2-300×151.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/dax-2-1024×514.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/dax-2-768×386.png 768w" sizes="(max-width: 1209px) 100vw, 1209px" /></p>
<p>S&amp;P500 (Bullish above 2692.25)</p>
<p>From a technical viewpoint. The S&amp;P remains within the bullish channel which has framed the recovery though is currently testing the supporting channel trend line. While price remains above the 2692.25 level, continued upside is likely with the yearly pivot 2976.50 the main upside objective.</p>
<p><img class="aligncenter wp-image-42148 size-full" title="The IndeX Files 21-04-2020" src="http://blog.tickmill.com/wp-content/uploads/2020/04/es-1.png" alt="The IndeX Files 21-04-2020" width="1216" height="606" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/es-1.png 1216w, https://blog.tickmill.com/wp-content/uploads/2020/04/es-1-300×150.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/es-1-1024×510.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/es-1-768×383.png 768w" sizes="(max-width: 1216px) 100vw, 1216px" /></p>
<p>FTSE (Bullish above 5760)</p>
<p>From a technical viewpoint. The FTSE broke down out of the rising wedge formation last week though still remains supported above the 5456.5 level for now, keeping further upside on watch. Price is currently capped by the monthly pivot at 5760, which, if broken should open the way for a test of the 6543.3 level.</p>
<p><img class="aligncenter wp-image-42147 size-full" title="The IndeX Files 21-04-2020" src="http://blog.tickmill.com/wp-content/uploads/2020/04/ftse-1.png" alt="The IndeX Files 21-04-2020" width="1221" height="609" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/ftse-1.png 1221w, https://blog.tickmill.com/wp-content/uploads/2020/04/ftse-1-300×150.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/ftse-1-1024×511.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/ftse-1-768×383.png 768w" sizes="(max-width: 1221px) 100vw, 1221px" /></p>
<p>Nikkei (Bullish above 19086.9)</p>
<p>From a technical viewpoint. The Nikkei is now testing the supporting trend line from 2020 lows as the recovery starts to wane. However, while price remains above the 19086.9 level, the near-term bias remains bullish. The big challenge for the Nikkei will be the retest of the 20414.2 yearly S1 where VWAP is also sitting.</p>
<p><img class="aligncenter wp-image-42146 size-full" title="The IndeX Files 21-04-2020" src="http://blog.tickmill.com/wp-content/uploads/2020/04/nikkei-2.png" alt="The IndeX Files 21-04-2020" width="1226" height="601" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/nikkei-2.png 1226w, https://blog.tickmill.com/wp-content/uploads/2020/04/nikkei-2-300×147.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/nikkei-2-1024×502.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/nikkei-2-768×376.png 768w" sizes="(max-width: 1226px) 100vw, 1226px" /></p>
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