Taking a look at the mornings indices, Nick Batsford, CEO of Tip TV and former City trader and technical analyst notes that there appears to be some upside potential ahead in global stocks.
S&P 500 to test upside
Starting with the S&P 500, he can see medium term support at 2040, and should price break above 2120, we could go on to test 2200. Looking to the DAX, Batsford commends that it has recovered above its descending trending, indicating the end of the correction. He feels that follow-through above 11,600 would strengthen the signal, suggesting a fresh advance. Batsford adds that a move above 12,400 would be confirmation.
VIX indicates bull market ahead?
Moving to the FTSE 100, Batsford notes that price has recovered above its descending trendline. He feels that follow-through above 6,750 would indicate another attempt at 7100. Regarding the Nikkei 225, he notes that the index has recovered above 20,000, suggesting a fresh advance underway. He adds that a breakout above 21,000 would be confirmation. Elsewhere, the VIX has retreated to low levels that are typical of a bull market, and in EUR/USD, Batsford concludes that spot looks technically weak.