Both recovering. Can the momentum continue?
The German DAX index has seen the index recover around 15.5% from the February lows. That is the good news. The not so good news is the index remains down around 7% on the year. I guess, you have to start somewhere.
Technically, the pair got closer to the 50% retracement of the move down from the November high. That level comes in at 10065.08. The high today reached about 10040. So the key target is getting closer. The 100 day MA is above that at 10189.03 today. That too will be a key MA to get and stay above if the buyers are to take back more control. The index gapped lower at the end of the calendar year, and that was the last time the price traded above that MA line.
What about the S&P Index?
Technically, that index moved up to - and above - the 200 day MA on Friday. On December 31st, the index closed below the 200 day MA and there has not been a close above the key MA in 2016. Friday the close was within a point of closing above. The 200 day MA today comes in at 2019.41. The high today is 2019.47. That is about as close as you can get. Failure to push and stay above that MA, should lead to some profit taking from the 11.5% gain from the lows. The 100 day MA is not far away at 1998.75 today.
Different technical reasons but each of the major indices are near key resistance levels.
