Summary:
- US500 has moved within 5 points of its all-time high
- Recovery in DE30 has boosted global sentiment
- Market remains in clear uptrend channel
Some risk-off flows seen at the start of the week following the collapse of coalition talks in Germany have eased with stocks recovering. The DE30 (a technical overview of the DE30 can be found here) has this morning moved up to its highest level of the week and the bullish sentiment can be seen across the Atlantic ahead of the US cash open, with the US500 rising to withing striking distance of its all time high at 2596.
The US500 has risen today to trade within 5 points of its all-time high. Source: xStation
The last year has been characterised by a smooth and steady uptrend in the market with very few days seeing large swings. It has now been 49 weeks since the market closed up by 2% or more for the week – the longest run since 1994. It is also 62 weeks since the market closed lower by 2% or more on the week – the longest run since 1965. Last week’s close was 2577 so a close this Friday above 2628 or below 2525 would signify a 2%+ move on the week.
Price remains towards the middle of a trend channel that has defined the price movements for the past 12 months barring a false break to the upside back in February. The channel has a top to bottom range of around 125 points with the upper bound currently at approximately 2643.
The US500 has been in a smooth and steady uptrend for the past 12 months. Price is around the middle of the trend channel and therefore could rise a fair bit without breaking higher. Source: xStation