Equities Attempting To Rebound Following Heavy LossesWhileequities markets continue to walk the tightrope of news flow stemming from theUkraine crisis, risk sentiment appears to be rebounding somewhat over theEuropean open on Tuesday. Following heavy sales over last week, most indices areseeing better demand this week as traders buy into these current lows.Thekey driver, of course, remains the ongoing conflict in Ukraine. Violence hasintensified over the last week including saddening reports of a steep uptick incivilian casualties as Russian forces bombard civilian areas. However, Putin’s objectiveof overthrowing the country appears to failing as Russian troops undergo severelogistical issues and continue to take heavy losses from steep Ukrainianresistance.Athird round of peace talks ended this week with Russia saying the conflict immediatelyso long as Ukraine relinquishes control of two of its eastern territories,recognises Crimea as independent, and ceases military action. Ukraine has sofar refused to these terms.Lookingahead, there Is perhaps some hope that the toll of the conflict on Russian troops,public sentiment in Russia and the weight of global sanctions against Russia,can produce an end to the conflict though, for now, Putin remains adamant thewar will continue.TechnicalViews DAXTheseverity of the almost 30% drop in the DAX is quite clear here. The decline hasfound support into a test of the 12462.59 level for now. However, with bothMACD and RSI turned firmly bearish and with clear downside risks on thehorizon, the market remains vulnerable to a further dip towards the 11590.13level next.S&P500Thesell off in the S&P appears to be stalled along the 4221.25 areas support.Price has made three big tests of this level with the support continuing tohold. Given the bullish divergence in momentum studies, the potential for a reversalhigher needs to be acknowledged. 4475.25 will be the key level for bulls tobreak, to the downside, 4062.25 is the next support if we move lower.FTSEThesell off in the FTSE has seen price breaking down through the bull channelwhich had framed price action over recent months. Price is currently holding atthe 6818.3 level and fighting to get back above 6968.7. With both MACD and RSIturned lower, risks are for a further drop towards 6647.6. To the topside, thekey area to monitor will be a retest of the broken channel around the 7137level.NIKKEIThebreakdown in the Nikkei has seen the market trading down to a test of the24619.3 level, below the broken bear channel. While the level is holding assupport for now, bearish RSI and MACD readings suggest the risks of acontinuation lower unless bulls can get back above the 25595.3 level.
Source: Tickmill
