The IndeX Files 24-03-2020

<h2>Federal Reserve Takes Historic Action</h2>
<p>Global equities benchmarks continue to plum fresh lows this week as the steady stream of selling which has characterised recent trading develops further. Indices around the world have traded lower this week despite escalating responses from central banks desperate to stop the selling in markets. The Nikkei has bucked the trend this week, however, as hopes for BOJ &amp; pension fund purchases have helped fuel a rally.</p>
<p>The Federal Reserve has been stealing headlines this week as it announced its latest operation aimed at buffering the economy. Following on from the $750 billion in QE announced earlier in the month, the Fed has now said that it will run QE as necessary rather than as per the limits of a predefined amount. This is the first time that the Federal Reserve has operated what has been referred to as unlimited QE.</p>
<p>Last week, the BOE, the RBA and the BOJ each announced additions to their own stimulus programs. However, despite the co-ordinated efforts of central bankers, the market has yet to mark any meaningful correction higher and the atmosphere among investors is still very much one of concern and uncertainty.</p>
<p>With both the number of new infections and the number of deaths still rising rapidly around the world, the global economy is in serious peril and without an equally co-ordinated action among global governments offering fiscal relief, it is not clear if central banks alone will be able to stop the stock markets collapsing further.</p>
<h2>Technical Views</h2>
<p><strong>DAX (Bearish below 10268.13)</strong></p>
<p>From a technical viewpoint. The DAX has seen a pop higher over night. After finding support at the 9227.94 level, price has since traded bac up to challenge the 9281 level. While sentiment remains bearish, a further recovery here will put the 10268.13 level back into view which could serve as the platform a higher push.</p>
<p><img class="aligncenter wp-image-40484 size-full" title="The IndeX Files 24-03-2020" src="http://blog.tickmill.com/wp-content/uploads/2020/03/dax-3.png" alt="The IndeX Files 24-03-2020" width="1227" height="616" srcset="https://blog.tickmill.com/wp-content/uploads/2020/03/dax-3.png 1227w, https://blog.tickmill.com/wp-content/uploads/2020/03/dax-3-300×151.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/03/dax-3-1024×514.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/03/dax-3-768×386.png 768w" sizes="(max-width: 1227px) 100vw, 1227px" /></p>
<p><strong>S&amp;P 500 (Bearish below 2452.75)</strong></p>
<p>From a technical viewpoint. The S&amp;P has now broken down through the long-term bullish trend line and is currently testing the late-2016 highs at 2318.25. Sentiment remains very bearish here and, with VWAP negative, a continuation lower looks likely unless price can quickly recover above the 2452.75 level.</p>
<p><img class="aligncenter wp-image-40483 size-full" title="The IndeX Files 24-03-2020" src="http://blog.tickmill.com/wp-content/uploads/2020/03/spx.png" alt="The IndeX Files 24-03-2020" width="1235" height="616" srcset="https://blog.tickmill.com/wp-content/uploads/2020/03/spx.png 1235w, https://blog.tickmill.com/wp-content/uploads/2020/03/spx-300×150.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/03/spx-1024×511.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/03/spx-768×383.png 768w" sizes="(max-width: 1235px) 100vw, 1235px" /></p>
<p><strong>FTSE ( Bearish below 5456.5)</strong></p>
<p>From a technical viewpoint. The FTSE is still languishing just above the recent 4724.8 level support. Though this level is holding for now, the market is still vulnerable to a further break lower unless we see a quick move back above the 5456.5</p>
<p><img class="aligncenter wp-image-40482 size-full" title="The IndeX Files 24-03-2020" src="http://blog.tickmill.com/wp-content/uploads/2020/03/ftse-1.png" alt="The IndeX Files 24-03-2020" width="1239" height="616" srcset="https://blog.tickmill.com/wp-content/uploads/2020/03/ftse-1.png 1239w, https://blog.tickmill.com/wp-content/uploads/2020/03/ftse-1-300×149.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/03/ftse-1-1024×509.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/03/ftse-1-768×382.png 768w" sizes="(max-width: 1239px) 100vw, 1239px" /></p>
<p><strong>Nikkei ( Bullish above 19078.6)</strong></p>
<p>From a technical viewpoint. The Nikkei has recovered strongly off the 16170 lows and has now traded back above the 19078.6 level. While above here, a retest of the broken yearly S1 at 20440.8 is the next objective. Keep an eye on the weekly candle close this week as we are currently seeing a strong bullish reversal signal.</p>
<p><img class="aligncenter wp-image-40481 size-full" title="The IndeX Files 24-03-2020" src="http://blog.tickmill.com/wp-content/uploads/2020/03/nikkei-2.png" alt="The IndeX Files 24-03-2020" width="1244" height="619" srcset="https://blog.tickmill.com/wp-content/uploads/2020/03/nikkei-2.png 1244w, https://blog.tickmill.com/wp-content/uploads/2020/03/nikkei-2-300×149.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/03/nikkei-2-1024×510.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/03/nikkei-2-768×382.png 768w" sizes="(max-width: 1244px) 100vw, 1244px" /></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>
<p><strong><i>High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% and 70% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.</i></strong></p>
<p>The post <a rel="nofollow" href="https://blog.tickmill.com/fund-analysis/the-index-files-24-03-2020/">The IndeX Files 24-03-2020</a> appeared first on <a rel="nofollow" href="https://blog.tickmill.com">Tickmill</a>.</p>