• Home
  • Pro
  • Partners
  • Help and support
  • English
  • 中文版
Pepperstone logo
Pepperstone logo
  • Ways to trade
    • Trading accounts

      Choose from two account types depending on your strategy

    • Premium clients

      Exclusive rewards and bespoke benefits for high-vol traders

    • Pricing

      Discover our tight spreads, plus all other possble fees

    • Pro
    • Active trader program
    • Refer a friend
    • Demo trading
    • Trading hours
    • 24-hour trading
    • Maintenance schedule
    • Risk management
    • Funding and withdrawals
  • Markets
    • Margin FX

      Get great rates on majors like EUR/USD, plus minors and exotics

    • Commodity CFDs

      Trade on metals, energies & softs, with oil spreads from 2 cents

    • Cryptocurrency CFDs

      Speculate on Bitcoin, Ether and more, with a trusted broker

    • Share CFDs
    • Index CFDs
    • ETF CFDs
    • Currency Index CFDs
    • Dividends for index CFDs
    • Dividends for share CFDs
    • CFD forwards
  • Trading platforms
    • TradingView

      Trade through the world-famous supercharts with great pricing

    • MetaTrader 5

      Explore the apex in trading automation with our execution tech

    • The Pepperstone platform
    • MetaTrader 4
    • cTrader
    • Trading tools
    • Integrations
  • Market analysis
    • Navigating markets

      Latest news and analysis from our experts

    • The Daily Fix

      Your regular round-up of key events

    • Meet the analysts

      Our global team giving your trading the edge

  • About us
    • Who we are

      Pepperstone was born from the dream of making trading better

    • Company news
    • Company awards
    • Protecting clients online
    • Trading accounts

      Choose from two account types depending on your strategy

    • Premium clients

      Exclusive rewards and bespoke benefits for high-vol traders

    • Pricing

      Discover our tight spreads, plus all other possble fees

    • Pro
    • Active trader program
    • Refer a friend
    • Demo trading
    • Trading hours
    • 24-hour trading
    • Maintenance schedule
    • Risk management
    • Funding and withdrawals
    • Margin FX

      Get great rates on majors like EUR/USD, plus minors and exotics

    • Commodity CFDs

      Trade on metals, energies & softs, with oil spreads from 2 cents

    • Cryptocurrency CFDs

      Speculate on Bitcoin, Ether and more, with a trusted broker

    • Share CFDs
    • Index CFDs
    • ETF CFDs
    • Currency Index CFDs
    • Dividends for index CFDs
    • Dividends for share CFDs
    • CFD forwards
    • TradingView

      Trade through the world-famous supercharts with great pricing

    • MetaTrader 5

      Explore the apex in trading automation with our execution tech

    • The Pepperstone platform
    • MetaTrader 4
    • cTrader
    • Trading tools
    • Integrations
    • Navigating markets

      Latest news and analysis from our experts

    • The Daily Fix

      Your regular round-up of key events

    • Meet the analysts

      Our global team giving your trading the edge

    • Who we are

      Pepperstone was born from the dream of making trading better

    • Company news
    • Company awards
    • Protecting clients online

Wall St Struggles Not Yet Mirrored Elsewhere

Michael Brown
Michael Brown
Senior Research Strategist
2 Mar 2023
Share
Risk appetite has continued to sour as the week has progressed, with Wednesday’s ISM manufacturing report the latest factor to derail equity bulls, after the survey showed a reacceleration in inflationary pressures. Ahead of key testimony from Fed Chair Powell, and the February labour market report, next week, equities are delicately poised, with sentiment remaining fragile.

Looking through a technical lens, it’s interesting to note that the S&P 500 now trades below all three of the 50-, 100-, and 200-day moving averages for the first time since early-January. Clearly, momentum has flipped in favour of the bears, with the gains seen since the turn of the year having almost entirely fizzled out, meaning said move must go down as another bear market rally.

Preview

A move below these key levels, as well as the failure of the index to break above 4,200 earlier in the month, paints a dismal picture in the near-term, with a return to the 3,800 region – which marked the lows last December – back on the cards. The descending wedge that is now in place (in green on the above chart) is something that the bears should pay close attention to.

For European stocks, however, the story might not be so grim. The DAX, for instance, despite the sharp losses seen on the other side of the Atlantic, remains within the tight range that has been in place since the start of last month.

Preview

The resilience of European equities has been remarkable, though can be relatively easily explained – investors have demonstrated a clear preference for value since the turn of the year, an area towards which Europe is heavily weighted, in addition to the improvement in sentiment towards China, which is a key driver of both the German index, and the German economy.

Bulls will look for price to remain above the 50-day moving average, and the key 15,000 psychological level, above which the index will remain a buy on dips. That said, we would need a close above 15,520 – the top of the recent range – to strengthen the bulls grip on proceedings.

Other European indices are also beginning to look more constructive. Despite having somewhat pared recent gains of late, and backing back under the 8,000 mark, London’s FTSE 100 has managed to hold above the May 2018 highs at 7,885, and above resistance-turned-support at 7,860. So long as price remains above this latter level, it seems logical to retain a bullish bias.

Preview

A similar theme is in evidence in Asia. The Hang Seng enjoyed a blockbuster session to kick-off March, vaulting over 4% higher in a single day, allowing the index to break to the upside of the descending channel which has been in place since mid-January, having bounced nicely off the 200-day moving average. Plenty of ticks in the box for the bulls here.

Said bulls likely now have the 50-day moving average, and the 21,000 figure, on their radars.

Preview

Related articles

Has The Hawkish Repricing Run Its Course?

Has The Hawkish Repricing Run Its Course?

Trading
Gold
Margin FX
Gold trader - A tactical gold play into defining event risk

Gold trader - A tactical gold play into defining event risk

Gold

The material provided here has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research we will not seek to take any advantage before providing it to our clients.

Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. It does not take into account readers’ financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.

Other sites

  • The Trade Off
  • Partners
  • Group
  • Careers

Ways to trade

  • Pricing
  • Trading accounts
  • Pro
  • Premium Clients
  • Active Trader program
  • Refer a friend
  • Trading hours

Platforms

  • Trading Platforms
  • Trading tools

Markets & Symbols

  • Forex
  • Shares
  • ETFs
  • Indices
  • Commodities
  • Currency indices
  • Cryptocurrencies
  • CFD Forwards

Analysis

  • Navigating Markets
  • The Daily Fix
  • Meet the analysts

Learn to Trade

  • Trading Guides
  • Videos
  • Webinars
Pepperstone logo
support@pepperstone.com
1300 033 375
Level 16, Tower One, 727 Collins Street
Melbourne, VIC Australia 3008
  • Legal documents
  • Privacy policy
  • Website terms and conditions
  • Cookie policy
  • Whistleblower Policy
  • Sitemap

© 2025 Pepperstone Group Limited

Risk Warning: Trading CFDs and margin FX is risky. It isn't suitable for everyone and if you are a professional client, you could lose substantially more than your initial investment. You don't own or have rights in the underlying assets. Past performance is no indication of future performance and tax laws are subject to change. The information on this website is general in nature and doesn't take into account your personal objectives, financial circumstances, or needs. You should consider whether you’re part of our target market by reviewing our TMD, and read our PDS and other legal documents to ensure you fully understand the risks before you make any trading decisions. We encourage you to seek independent advice if necessary.

Pepperstone Group Limited is located at Level 16, Tower One, 727 Collins Street, Melbourne, VIC 3008, Australia and is licensed and regulated by the Australian Securities and Investments Commission.

The information on this site and the products and services offered are not intended for distribution to any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

© 2024 Pepperstone Group Limited | ACN 147 055 703 | AFSL No.414530