Ticker tape by TradingView

September 27, 2021

Trading American And European Indices After Big News

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.

A1 Edgefinder

Try for FREE!
or get 20% off the full version using code "READER"
GET FREE VERSION

want to see what we're trading?

Join The VIP Community!
Our entries, exits & analysis
Live Webinar Coaching
Trading Chatrooms
Strategy Library 
Exclusive Trading Guides
Use Code "READER" for 10% OFF!
JOIN NOWJoin FREE Discord
What IPEF Could Mean for US Markets

On Monday, May 23rd, US President Joe Biden unveiled a new trade pact with twelve Indo-Pacific countries called the Indo-Pacific Economic Framework (IPEF). The launching of this deal, coupled with Monday’s news that the Biden administration is considering the merits of rolling back tariffs on imports from China, saw the Dow close nearly 500 points […]

Read More
Breaking Down The SPX500 Trade

This week, I took a trade on the SPX500 that ended up being a successful one by the time it closed. We caught a 29 point move when it was all said and done, and here is the breakdown behind it. Reasons For Buying SPX500 On May 23, I sent out an alert to the […]

Read More
Why Euro Is The Biggest Winner This Week

One of the forex market's worst performers this year now has the potential to become one of the best plays in 2022. On the day, euro is up and is performing stronger against the USD than any other currency as of now. EUR/USD is up 0.36% today. Euro To "Positive Territory At The End Of […]

Read More
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
homescreensmartphone linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram