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Are Stocks Pointing to a New Rally?

jeffriess
March 17, 2020
by Joseph Jeffriess, Market Analyst

Asian indexes remained mixed but futures and ASX200 see strong gains in today’s Tokyo and early European sessions.

Could we see a new recovery rally tonight? So far the ASX200 has lead the gains, posting what most have seen as a surprise rally after last night’s latest plunge on Wall Street. Overnight U.S. indexes dropped by percentages not seen since 1987. The Dow Jones had its third-worst session falling by 12.93%.

The ASX200 has surprised traders today by adding 5.83% after many were expecting the possibility of further carnage. The financial sector led the buying closing  8.42% higher, CBA closed the session 13.26% in the black.

CBA Daily Chart

Looking Towards the European and U.S. Sessions

Currently, futures are looking positive at this stage, the DAX is 3.39% higher, while the Euro Stoxx 50 is 3.39% higher. Looking at the GER30 4H chart we can see a few points to keep an eye on.

We’ve seen two solid bars up, but the issue continues to be resistance seen at 8935. So for the current possible bearish continuation to be beaten we would like to see buyers break above resistance to show that buyer momentum continues. If sellers break back down to the 8340 mark, we could be gearing up for a new attempt lower. So for now, it’s up to buyers to prove their numbers.

Tonight’s Data

EUROPEAN SESSION

9:00 pm  German ZEW Economic Sentiment

All-day – EU Economic Summit

N.Y. SESSION

11:30 pm U.S. Retails Sales and Core Retail Sales.

(Times adapted to AEDT timezone)

Good trading from Eightcap.
All times are AEDT.