Global Markets Thrive: Indices Start New Year Positively

Global markets start 2024 positively: Indices, FTSE 100, DAX 40, and S&P 500 show strength, eyeing key highs amid trends.

In a promising start to the new year, major global indices, including the FTSE 100, DAX 40, and S&P 500, are displaying positive trends and setting their sights on critical milestones.

FTSE 100 Eyes September and December Highs

The FTSE 100 is commencing the year on a robust note, focusing on achieving highs from September and December at 7,747 to 7,769. Despite a mixed session in Asia, the index remains resilient. As long as the Thursday low of 7,705 holds, there is sustained upside pressure, targeting the 7,747 to 7,769 range before reaching the 7,800 mark. A potential slip below 7,705 could lead to a retest of the October peak at 7,702, with the November-to-December uptrend line offering support at 7,676.

Global Markets Thrive: Indices Start New Year Positively

DAX 40 Aims for Recent Highs

The DAX 40 index is optimistic as it sets its sights on recent highs at 16,809 to 16,812, anticipating positive outcomes from final German PMIs. Exceeding these levels could bring the December record high of 17,003 back into focus. Support lies beneath Thursday’s low of 16,686 at the December 20 low of 15,595. Only if this support gives way would the July peak at 16,532 be expected to provide a supportive level.

S&P 500 Indicates Potential Correction

The S&P 500, having experienced nine consecutive weeks of gains and reaching its most overbought state in over three decades, shows early signs of a potential top, marginally below its January 2022 record high of 4,817. Approximately 50% of S&P 500 stocks are trading above the 70% overbought on their 14-day simple moving averages (SMA). Additionally, the daily Relative Strength Index (RSI) is displaying negative divergence, suggesting a heightened risk of a correction lower.

Potential declines through the October-to-January uptrend line and Friday’s low at 4,451 may occur. A position between the November and mid-December 2021 highs of 4,752 to 4,743. This scenario could bring the December 20 low of 4,692 back into consideration. Last week’s peak at 4,795 also presents observed resistance above the December 20 high of 4,778.

Monitor these key levels and stay attuned to market developments as the new year unfolds, advising investors.

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