The IndeX Files 28-04-2020

<h2>All Eyes On The Recovery</h2>
<p>Benchmark global equities indices have been trading with renewed vigour this week as the general global focus begins to shift onto the easing of lock-downs, in some areas, and plans for easing lock-downs in others. With most developed nations seemingly past the peak of the COVID-19 outbreak, there is now growing pressure for governments to begin reopening economies in efforts to avoid suffering further damage.</p>
<p>The BOJ helped boost equities prices this week by announcing that it will be increasing its monthly bond purchase which now run off-quota, at an unlimited scope as necessary to support financial conditions, as per the Fed’s playbook.</p>
<p>The FOMC will be the next key central bank event this week and while no further adjustments are expected at this stage, the details of the meeting statement pertaining to the outlook and forward guidance, with further details to follow in the press conference, will be closely watched with the Fed expected to acknowledged the extent of the damage suffered by the US economy and the likelihood of further easing if necessary.</p>
<p>The ECB will then follow on Thursday and, although forecasts are more divided, the ECB seems likely to remain on hold at this meeting also. With the post lock-down phase of the crisis only just starting, Lagarde and co will likely express their concern as well as their willingness to do more but also the need to keep its powder dry at this point while it waits to see what shape the recovery will take.</p>
<h2>Technical Views</h2>
<h2>DAX (Bullish above 10268.18)</h2>
<p>From a technical viewpoint. The DAX too, had fallen from its bullish channel though having found support at a retest of the 10268.18 level has now turned higher again. While price holds above this level, a retest of the yearly S1 at 11286.44 will be the next objective.</p>
<p><img class="aligncenter wp-image-42538 size-full" title="The IndeX Files 28-04-2020" src="http://blog.tickmill.com/wp-content/uploads/2020/04/dax-3.png" alt="The IndeX Files 28-04-2020" width="1207" height="614" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/dax-3.png 1207w, https://blog.tickmill.com/wp-content/uploads/2020/04/dax-3-300×153.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/dax-3-1024×521.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/dax-3-768×391.png 768w" sizes="(max-width: 1207px) 100vw, 1207px" /></p>
<h2>S&amp;P500 ( Bullish above 2975.75)</h2>
<p>From a technical viewpoint. The S&amp;P has recovered the losses suffered last week when it broke down out of the recent bullish channel and is now trading higher again. The key test for the index will be the 2975.75 yearly pivot where we also have VWAP. To the downside, the yearly S1 at 2691 remains the key support level.</p>
<p><img class="aligncenter wp-image-42537 size-full" title="The IndeX Files 28-04-2020" src="http://blog.tickmill.com/wp-content/uploads/2020/04/es-3.png" alt="The IndeX Files 28-04-2020" width="1217" height="608" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/es-3.png 1217w, https://blog.tickmill.com/wp-content/uploads/2020/04/es-3-300×150.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/es-3-1024×512.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/es-3-768×384.png 768w" sizes="(max-width: 1217px) 100vw, 1217px" /></p>
<h2>FTSE 100 (Bullish above 5936.1)</h2>
<p>From a technical viewpoint. The FTSE is trading back above the monthly pivot this week though, for now, is still held up by the recent structure highs at 5936.1. If price can break out above this level a further recovery towards the 6543.4 level will become the next objective with a test of VWAP coming in just ahead of the level.</p>
<p><img class="aligncenter wp-image-42536 size-full" title="The IndeX Files 28-04-2020" src="http://blog.tickmill.com/wp-content/uploads/2020/04/ftse-2.png" alt="The IndeX Files 28-04-2020" width="1229" height="609" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/ftse-2.png 1229w, https://blog.tickmill.com/wp-content/uploads/2020/04/ftse-2-300×149.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/ftse-2-1024×507.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/ftse-2-768×381.png 768w" sizes="(max-width: 1229px) 100vw, 1229px" /></p>
<h2>NIKKEI (Bullish above 19076.1)</h2>
<p>From a technical viewpoint. The NIKKEI has managed to hold the retest of the 19076.1 level as an interim base for now putting focus on a move up to test the yearly S1 at 20432.3 next (with VWAP just ahead). If price can break above this level this will be a strong boost for the recovery turning the near term bias bullish.</p>
<p><img class="aligncenter wp-image-42535 size-full" title="The IndeX Files 28-04-2020" src="http://blog.tickmill.com/wp-content/uploads/2020/04/nikkei-3.png" alt="The IndeX Files 28-04-2020" width="1219" height="608" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/nikkei-3.png 1219w, https://blog.tickmill.com/wp-content/uploads/2020/04/nikkei-3-300×150.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/nikkei-3-1024×511.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/nikkei-3-768×383.png 768w" sizes="(max-width: 1219px) 100vw, 1219px" /></p>
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