Investors were clearly worried about the conflict between Israel and Iran, because after the apparent peace statement, the AEX rate raised by 8 points. Yet an actual bull market does not seem realistic yet, because there is still a lot of uncertainty above the market.
A lot of uncertainty above the market
The conflict in the Middle East received a lot of attention in the last 12 days, so you would almost forget that there are other thunder clouds above the market.
The Trump government has still not succeeded in concluding definitive agreements with its most important trading partners in the war war. The conversations with Japan and Europe in particular would be particularly difficult.
We see a lot of assets today, including the AEX, but that makes a real breakthrough still unlikely.
In addition, the economic data in the United States was not very strong recently.
AEX looks technically strong
Where the macro-economic and more fundamental situation is not extremely beneficial for a bull market, the technical picture looks a bit better for the AEX.
Due to the rises of the past hours, the AEX has again exceeded all major exponential averages on the daily graph, see below. That generally points to a powerful positive momentum.
There is a bullish formation, which means that the most short -term averages are on a higher course than the more long -term variants (21> 55> 100> 200).
That speaks to the advantage of a possible bullrun. But for a real breakthrough, a little more seems needed. Especially in the form of the loss of uncertainty about the trade war.
Source: https://newsbit.nl/aex-koers-schiet-omhoog-na-vrede-in-midden-oosten/
