The CAC accelerated its rebound, driven by expectations of a slowdown in the pace of monetary tightening by the Federal Reserve, favoring growth stocks. Indeed, the minutes of the Fed’s last monetary policy meeting suggested that the rate hikes envisaged in the coming months will not exceed 50 basis points, while some investors feared more.
In April, the PCE index, the FED’s favorite inflation barometer, came out up 6.3% over one year and 4.9% measured in core, excluding food and energy. These figures are still very high but nevertheless reflect a slowdown.
The level of hedging remains particularly high, a sign of extreme caution, which could fuel the ongoing rebound.
Excessive pessimism has caused the American indices to fall and in particular the Nasdaq Composite which, after having lost 30% since the start of the year, has been picking up for a few sessions.
On the future June
The resistors are : 6515 even 6548 and 6575 then 6608 even 6644 then 6680 et 6718.
The supports are : 6481, 6462 and 6439 then 6416 and 6380 then 6360 and 6340 then 6326,5 et 6260 even 6204 then 6160 et 6047 then 6000, 5922 even 5871 and 5780.
Intraday, the bias turns bullish above 6362.
Graphically, the CAC40 Future (see chart attached in 14 Hours) is in a configuration of continuity following the bullish momentum of Thursday’s session.
This rebound gained momentum with the passage of intermediate resistances located at 6450/6460. The next objectives could well be to 6519 et 6570before a key point located at 6607 points. This level is important since it materializes the 61.8% of retracement and Fibonacci of the decline between 7225.5 and 5607 points. In general, crossing such a level leads to a return towards the starting point, around 7200 points.
On the contraryin case of return under 6480the CAC risks falling back towards 6467 but as long as 6450 remains support, no risk a priori. On the other hand, the rebound could be invalidated below this level. If this were the case, the downside pressure is likely to resume in the direction of 6337 et 6275 and the lower part of this stabilization zone located at 6210 points.
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