The US stock market has been on a downward trend recently, with the S&P 500 and Nasdaq100 declining for the past three days and Dow Jones losing for the past ten days. On the other hand, European indices like Germany’s DAX 40 and the British FTSE 100 are showing resilience and adding to their gains.
Germany’s DAX 40 recently pulled back to its 50-day moving average, attracting bargain hunters and signaling a potential pause in the sell-off. If the index can hold above 18350, it will likely aim to renew historical highs and surpass 19000. However, a sharp failure below 18250 would confirm the start of a correction.
The British FTSE 100 has shown even more revival, bouncing back from its recent lows and potentially returning to renewed highs above 8500 in the coming weeks. If the corrective activity is indeed over, the index could see further gains. However, if negative sentiment from US indices persists, European markets may struggle to resist the negativity.
If the FTSE 100 falls below 8125, it could be a sign of further downside, with a more reliable confirmation being a dip below 8100. Despite the uncertainty in the global markets, European indices are holding up well and showing signs of resilience. Investors will be closely watching for any further developments in the coming days to gauge the direction of the markets.