DAX, Dow Jones, Nasdaq Analysis and Charts
DAX marches towards its previous high
The index made headway on Monday as it continued on course to return to the recently established all-time highs. The utilities, food and beverages, and chemicals sectors all made gains. Hints of rate cuts over the summer by the ECB helped to lift the mood.
Early trading on Tuesday has seen the index make small gains, and it is now just over 100 points from the mid-May high at 18,935. From there the price will be in new uncharted territory.
Last week saw support emerge at trendline support from the April low, while the price briefly dipped below the 18,636 highs from early April. The overall bullish view remains firmly in place.
DAX Daily Price Chart
| Change in | Longs | Shorts | OI |
| Daily | 3% | 4% | 4% |
| Weekly | 8% | -3% | 0% |
Dow still pressured by recent weakness
US markets were closed for Memorial Day on Monday, and the Dow continues to linger around the low established last week.The index had dropped sharply on Thursday after more bad news for Boeing, leading to the worst day for the index in a month. All 30 components fell for the first time since 20 December.
Bulls will be looking for some stabilization above the 50-day simple moving average, and then a revival back above 39,400 that will help establish a low. This then leaves the index on course to test the 40,000 area once more.
A close below the 50-day SMA would then put pressure on the index, and open the way to the late April high at 38,500, and then down towards 38,000.
Dow Jones Daily Price Chart
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Nasdaq 100 sitting close to record high
Buoyed by Nvidia’s earnings, the Nasdaq 100 was able to shrug off the Thursday wobble, unlike the Dow, and it pushed higher into the end of the week.
The shortened week finds the Nasdaq 100 on course to test last Thursday’s record high at 18,949. From there the 19,000 level looms as the next major round number.
A short-term bearish view would need a close back below 18,552, Thursday’s low, and would then test the record high set in March around 18,500.
Nasdaq 100 Daily Price Chart
