A1 Trading

Trading American And European Indices After Big News

September 27, 2021
Frank Cabibi

9/27/2021

Election results in Germany has German equities mostly flat on the day as investors are watching the Social Democratic Party take the lead in the polls. In Washington D.C., legislation is toiling to raise the US's debt limit, pass Biden's agenda and avoid a government shutdown from defaulting on federal aid with hundreds of thousands still out of work.

Our outlook

Both indices are stagnant right now, but the fears in the US over the weekend might have subsided for now. I think this week will be pretty volatile for global equities markets especially in the US and Europe. The best way to trade these indices is probably on short term momentum, or intraday momentum. The tight election race in Germany and the fears of a shutdown in the US seem like they could have day-to-day catalysts. Looking for technical setups on the 4H and 1D seem like the best move here.

Trade Setups

SPX500

SPX500 is making higher lows and highs on the 4H chart which could be a good sign that the market wants to test resistance around $4489. Support lies around $4423.

GER30

Germany's stock index is behaving similarly to the SPX in the sense that they aren't really moving today. The two most recent 4H candles suggest that price wants to move higher, although the index has struggled to break above this falling trend line the all of September so far.

GER30 on the 1D timeframe also shows us the 50 DMA which the index has been respecting as a significant level to break. Here we can see multiple tests on that moving average before the index either breaks above or below. This daily candle looks like price rejected it and might cause a downtrend in the short term. Support is around $15,500.

The EdgeFinder

All-in-one Fundamental Dashboard

30 Days Access

Free Telegram

Join for daily analysis and trade setups!

Join Telegram

DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here
Home
Edgefinder
Signals

A1 Trading Company

A1 Trading is a leading financial analysis and trading education company dedicated to empowering traders of all levels. Our team combines extensive market knowledge with cutting-edge technology to provide valuable insights and tools for traders worldwide.
2024 All Rights Reserved | A1 Trading Company
There is a significant degree of risk involved in trading securities. With respect to foreign exchange trading, there is considerable risk exposure, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or currency pair. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you can afford to take the high risk of losing your money.
homesmartphonelaptop-phonecross-circle linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram