- Political talks support markets but risks remain if US-China and US-Iran deals stall.
- S&P 500 and NASDAQ approach record highs with steady upward momentum holding for now.
- DAX corrects lower while WIG20 remains stuck in consolidation awaiting breakout direction.
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This week, stock markets moved mostly because of political and trade developments. New talks between Beijing and Washington brought both sides closer to a deal, though it still needs final approval from both Presidents.
At the same time, President Donald Trump also said today that the US may soon reach a deal with Iran on its nuclear program. If no deal is made, the risk of military action will grow, which could lead to sharp drops in stock markets. Therefore, uncertainty remains high, especially after Israel attacked Iran’s military bases.
On the economic side, the main data this week was US inflation, which came in slightly lower than expected. This raised hopes that the Federal Reserve may cut interest rates a bit sooner.
S&P 500 Maintains Upward Momentum
The S&P 500 continues to move steadily higher, supported by the lower boundary of its rising price channel. Right now, it has broken above the key 6000 level and is trying to hold above it, which remains the most likely scenario for now.
The main target for buyers is the all-time high just below 6200, which now looks within reach. However, if the price breaks sharply below the lower band, the risk of a correction will increase, possibly bringing the index down toward the support zone between 5800 and 5700.
NASDAQ is not leaving the upward path
Nasdaq 100 prices are also moving steadily higher, like the S&P 500, with buyers now approaching the record highs near 22300 points. A breakout to new highs currently looks like the most likely scenario.
A drop below the support level of 21500 points would be a warning for buyers and could lead to a deeper correction toward 20500 points.
DAX Develops Downward Correction
Unlike the US indices, the DAX is seeing a stronger downward correction and is moving closer to a key support level at 23500 points. If this level breaks, it could open the way for further declines, with the next support around 21500 points.
However, the market is still in an uptrend. If there is a strong rebound from the support level, it could offer a good opportunity to take a long position.
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