The major European indices are ending the day with solid gains. Italy's FTSE MIB leads the charge. The German DAX, France's CAC, and Spain's Ibex all rose by 1.4% or greater as well. The major indices are also closing higher for the week despite the 75 basis point hike by the ECB.
Looking at the closing levels:
- German DAX rose 183.89 points or 1.43%
- France's CAC rose 6.43 points or 1.41%
- UK's FTSE 100 rose 9.03 points or 1.23%
- Spain's Ibex rose 116.3 points or 1.47%
- Italy's FTSE MIB rose 416 points or 1.9%
For the trading week, the gains today erased losses from earlier this week
- German DAX +0.29%
- France's CAC +0.73%
- UK's FTSE 100 +0.96%
- Spain's Ibex +1.27%
- Italy's FTSE MIB +0.7%
Looking at the German DAX hourly chart below, the price today opened and broke higher in the 1st hour of trading and raced above its 100 hour moving average (blue line in the chart below) to test the 38.2% retracement of the move down from the August 16 high. That retracement level comes in at 13117.09. The high price today reached 13121.13 just above that level, but backed off into the close.
Into the new trading week next week, getting above that 38.2% retracement would be needed to give the buyers more confidence with the 200 hour moving average at 13236.07 as the next upside target to get to and through.
