FTSE 100 and Nikkei 225 higher, but S&P 500 rebound stalls

forex-analysis

FTSE 100 and Nikkei 225 Show Strength, but S&P 500 Faces Resistance

Published on August 7, 2024

Introduction

As global financial markets navigate choppy waters, three major indices stand out: the FTSE 100, Nikkei 225, and the S&P 500. While the FTSE 100 and Nikkei 225 forge ahead, the S&P 500 grapples with resistance. Let’s dissect the dynamics behind these contrasting moves.

1. FTSE 100: A Recovery in Progress

  • The FTSE 100, the UK’s premier stock index, is in recovery mode.
  • After hitting a low on Monday, it rallied back above 8000 yesterday and continues to move higher in early trading.
  • Further gains target the August high at 8400, and then the record high from May, just below 8500.

2. S&P 500: Struggling to Push Higher

  • The S&P 500, a key U.S. stock index, faces headwinds.
  • While it has rebounded off recent lows, further progress remains elusive.
  • A close above 5300 would bolster the bullish view, signaling that a low has been formed.
  • Sellers, however, watch for a move back below 5200, which could indicate a new downward move toward 5100.

3. Nikkei 225: Rebounding Above 35,000

  • Japan’s Nikkei 225 index has rallied once more.
  • Despite an indecisive session on Tuesday, it moved back above 35,000.
  • Further gains target the April low at 36,707 and the late May low at 37,660.
  • A turn lower below 37,000 risks creating a lower high and renewed bearish momentum.

Conclusion

As investors navigate these volatile times, the divergent paths of these indices underscore the complexity of today’s markets. While the FTSE 100 and Nikkei 225 forge ahead, the S&P 500 grapples with resistance.

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