The IndeX Files – 31-03-2020

<h2>Central Bank Easing Supports Markets</h2>
<p>Global equities benchmarks have seen broad buying across recent sessions with many indices still holding near the top of last week’s rally. Investors finally found some comfort in the vast swathe of central bank easing announced over March, allowing equities prices to recover some of the steep losses suffered over the month. With the Fed leading the pack, having announced 1.50% worth of rate cuts and the start of unlimited QE, US equities have maintained upside momentum.</p>
<p>UK asset prices have not been quite so buoyant. Given the solid rally in the British Pound and the downgrading of the UK’s credit rating by Fitch, the FTSE has come off last week’s highs and is trading in the red so far this week. The UK has just started its second week on lockdown. With the death toll starting to slow, there is some hope that the measures are working, though many expect the current conditions to be extended beyond the 3 weeks initially planned.</p>
<p>Asian equities have fallen lower this week as the situation there develops. In Japan, lockdowns were finally implemented over the weekend in some cities. Furthermore, the number of Japanese workers staying at home has doubled in the last week. The Japanese government has also announced that is preparing to ban US visitors from entering the country, along with those from South Korea and China, in an effort to prevent imported cases of the virus.</p>
<h2>Technical Views</h2>
<p><strong>DAX (Bullish above 10268.16)</strong></p>
<p>From a technical viewpoint. The DAX is still holding above the 9227.92 level following the recovery last week. However, for now, the rally has been capped by the bearish trend line from YTD, with the 10268.16 level just above. If price can break above this level, bias will turn bullish in the near term.</p>
<p><img class="aligncenter size-full wp-image-40879" src="http://blog.tickmill.com/wp-content/uploads/2020/03/dax-4.png" alt="" width="1224" height="618" srcset="https://blog.tickmill.com/wp-content/uploads/2020/03/dax-4.png 1224w, https://blog.tickmill.com/wp-content/uploads/2020/03/dax-4-300×151.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/03/dax-4-1024×517.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/03/dax-4-768×388.png 768w" sizes="(max-width: 1224px) 100vw, 1224px" /></p>
<p><strong>S&amp;P 500 (Bullish above 2452.75)</strong></p>
<p>From a technical viewpoint. The S&amp;P remains well bid this week and has maintained support at the 2452.75 level though has so far been stalled at a test of the bearish trend line from YTD highs. While above here, a continuation higher is seen with a challenge of the yearly S1 at 2700.00 the next level to watch above market.</p>
<p><img class="aligncenter size-full wp-image-40878" src="http://blog.tickmill.com/wp-content/uploads/2020/03/spx-2.png" alt="" width="1239" height="614" srcset="https://blog.tickmill.com/wp-content/uploads/2020/03/spx-2.png 1239w, https://blog.tickmill.com/wp-content/uploads/2020/03/spx-2-300×149.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/03/spx-2-1024×507.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/03/spx-2-768×381.png 768w" sizes="(max-width: 1239px) 100vw, 1239px" /></p>
<p><strong>FTSE (Bullish above 5456.5)</strong></p>
<p>From a technical viewpoint. The FTSE is fighting to hold above the 5456.5 level. As with the Nikkei, if the FTSE can hold here and establish a higher low against the March lows, we could see a continuation higher. Back below this level, however, and another test of the 4724.8 lows looks likely.</p>
<p><img class="aligncenter size-full wp-image-40877" src="http://blog.tickmill.com/wp-content/uploads/2020/03/ftse-2.png" alt="" width="1242" height="657" srcset="https://blog.tickmill.com/wp-content/uploads/2020/03/ftse-2.png 1242w, https://blog.tickmill.com/wp-content/uploads/2020/03/ftse-2-300×159.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/03/ftse-2-1024×542.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/03/ftse-2-768×406.png 768w" sizes="(max-width: 1242px) 100vw, 1242px" /></p>
<p><strong>Nikkei (Bullish above 19076.1)</strong></p>
<p>From a technical viewpoint. The Nikkei has recovered off the month’s lows, though is currently on course to end the month below the S1 at 19718.9. With VWAP still negative, the outlook remains bearish in the near term. However, if price can hold above the 19076.1 level, this could prove to be a higher low allowing for a further move higher.</p>
<p><img class="aligncenter size-full wp-image-40876" src="http://blog.tickmill.com/wp-content/uploads/2020/03/nikkei-5.png" alt="" width="1242" height="611" srcset="https://blog.tickmill.com/wp-content/uploads/2020/03/nikkei-5.png 1242w, https://blog.tickmill.com/wp-content/uploads/2020/03/nikkei-5-300×148.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/03/nikkei-5-1024×504.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/03/nikkei-5-768×378.png 768w" sizes="(max-width: 1242px) 100vw, 1242px" /></p>
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