Markets Rattled By Russia/Ukraine Military FearsIt’s been a volatile start to the week for benchmark global equities indices. Asset markets have seen wild price action over the last 24 hours with stock prices plunging amidst rising geo-political fears before recovering off the lows. Once again today, however, risk markets are back under pressure as uncertainty grows over potential military conflict between Ukraine and Russia.Reports over the weekend that Russia is planning an imminent invasion of Ukraine were accompanied by reports of the UK sending personnel and hardware to Ukraine. Additionally, the US is said to have around 8000 troops on standby, ready to be deployed to Ukraine if Russia does attack. This news-flow has obviously taken a heavy toll on investor sentiment this week given the risks of broader hostilities.Away from those headlines, markets are also bracing themselves for the January FOMC meeting which concludes on Wednesday. While no action is expected to be taken, there are upside risks around the Fed’s outlook and forward guidance, with traders expecting the Fed to deliver a more hawkish message, essentially confirming a rate hike in March. While it will likely take a significant upgrade on the Fed’s last outlook to affect a shift higher in USD, given the broader backdrop of risk aversion, equities are certainly vulnerable to a deeper move lower around the event.Technical ViewsDAXThe breakdown through the rising trendline has very quickly gathered pace with the DAX taking out key support levels at 15743.01 and 15473.83. Price is currently sitting on big support ta the 15078.83 levels. However, with both MACD and RSI firmly bearish here, the focus is on a further break lower in the near term towards 14791.27 next.S&P 500The collapse in the S&P has seen the market plunging by over 12% from the all-time highs, following the breakdown through the bull channel low. Price is currently sitting on support at the 4295.75 level. Price briefly tested below the level yesterday before closing above, offering some hopes for a rebound and continuation higher. However, with both MACD and RSI firmly bearish, the near-term focus is on a deeper move lower unless bulls can reclaim 4475.25.FTSEThe correction lower found strong bids into 7241, taking the market back above the 7362.6 level for now. With MACD and RSI both bearish, there are risks of further downside near term. However, for now, the current move is merely a correction within the broader bull channel, keeping the focus on a continuation higher towards 7691.6 in the medium term.NIKKEIFollowing the rejection at the triangle top, the Nikkei has subsequently broken below the structure and is now sitting on support at the 26932.1 level. With MACD and RSI both bearish here, the focus is on a continuation lower towards 26246 unless bulls can get back above the broken 27422.9 level.
Source: Tickmill
