The world’s leading stock indexes were mixed in the past week. Investors didn’t understand how to react to the US Labor Market statistics. The unexpected increase in employment has pushed numbers back to pre-Covid-19 levels, reinforcing confidence that the US economy will be able to avoid a recession, but on the other hand, they have believe that the Fed will continue to tighten monetary policy. The Bank of England meanwhile raised interest rates to 0.5% for the first time in 27 years, but annoyed the market with its pessimistic forecasts about the UK economy’s outlook for several years. next. The current week will be relatively calm amid the gradual end of the US reporting season. The central event will be the release of US inflation data for July.
In terms of technical analysis on the daily chart, the S&P 500 index has run out of potential after breaking the downtrend line and moving to a consolidation area above the 4080 support. near the overbought zone, so the S&P 500 has little room to add strength. Therefore, it is likely that the index will close to the support level of 4000.
On the daily DAX chart, signs of a rising wedge are forming with the simultaneous placement of the stochastic line in the overbought zone. This does not rule out a drop to the 13350 and 13000 support levels.0