Following recent price moves, it has slipped below its 50-day moving average and flirted with its
200-day moving average.
The Euro STOXX 50, the euro zone's blue-chip index, rose 1.6% to 2,822.85 points, above its
200-day moving average of around 2,797 points and the 61.8% Fibonacci retracement of the index's fall from an April high to a May low at 2,805.95 points -- a positive signal.
From May lows of 2,594 the S&P 500 rallied to 2,742 highs on Monday before stalling out and pulling back to the 2,710 area presently -- back inside its descending wedge trendline, but still some way above its 2,625
200-day moving average. Fresh angst over N.
The Euro STOXX 50 index has also formed a "golden cross" technical trading pattern - formed when its 5-day moving average level crosses above the
200-day moving average level - which could also act as a signal to buy the index.
"We are at a point where the technical picture has improved considerably, but the problem is that the S&P 500 index doesn't want to break through the
200-day moving average. It's a worrying sign and if it stays like this for too long, then we can expect to go down again."
EUR-USD posted a 1.2008 rebound high, but struggled to maintain gains above 1.2000 on two separate attempts, leaving untroubled both yesterday's peak at 1.2032 and the
200-day moving average at 1.2054.
The news lifted gold out of the near $100 range it had held within since mid-May and above its
200-day moving average for the first time since March.
Some technical analysts, who study price charts for clues to future direction, think oil prices could still break through $80 a barrel following a breach of the key
200-day moving average level last week.
It faces the next near-term resistance at around 2,805 points -- its
200-day moving average and a 61.8% Fibonacci retracement of a fall from a high in April to a low in May.
