Publication date: February 6, 2025
It is Thursday, February 6, and the AEX is at 923 in the morning session. That is 16 points (1.75%) higher than last week's reading.
What happened on the AEX in the past week
The AEX once again started the week sharply lower. Whereas last Monday the market was affected by the developments around the Chinese chatbot DeepSeek, this time it was the statements of Donald Trump, who announced a possible trade war over the weekend. This caused the AEX to open 1.5% lower at 908 on Monday.
Soon after, news that a temporary solution to trade tariffs had been agreed upon allowed financial markets to recover with relief. The AEX set a preliminary weekly high this morning at 924.
What does this mean for sentiment on the AEX?
Sentiment on the AEX remains positive. The index touched 928 on Friday and continues to come back strongly from interim price dips.
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Based on past weeks, the AEX is expected to continue to rise to 945. From that level, the algorithm expects a longer correction to the 920 level before continuing the upward trend to the new price target of 980. The
stop loss for the pending buy position in the AEX has been raised to 896 based on the closing price.
Above you will find the chart of the AEX over the past 2 months. You can see the running signal and the most likely short-term scenario plotted.
What happened on the Nasdaq this past week?
The Nasdaq futures are currently at 21,800 which is 150 points (0.7%) higher than last week's reading.
The Nasdaq futures also opened lower on Monday, setting weekly lows at 20,943. In recent days, the Nasdaq rebounded nicely to this morning's high at 20,830.
What is the outlook for the Nasdaq future?
The price pattern has been sideways and volatile within a wide range for six weeks. This is identified by our algorithm as a set-up for a new top which will, however, be modest. The short-term expectation is unchanged and positive with a price target of 23,000. From that level the possibility of a longer correction increases.
The long position taken at 20,440 holds the levels of 20,900 at the closing price and 23,000 as a trigger to take profits.
Below is the chart of Nasdaq futures over the past 7 months with the most likely scenario.
What happened on the Dow Jones Industrial Average (DJIA) Index this past week?
The DJIA is currently quoting 45,115 points, which is 100 points (0.2%) higher than last week's reading.
In the past week, the DJIA also had to slump on Monday and was trading 3% lower. The DJIA again showed a lot of strength and movement in the past week. After Monday's low at 43,960, the DJIA is surging back above 45,000 today.
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What is the outlook for the Dow Jones Industrial Average Index?
The correction expected last week has taken place but the most likely scenario indicates another slight pullback in the near-term expectation. From the current level of 45,100, the DJIA may briefly rebound to 44,200 before breaking out toward the price target at 48,000.
Below is the chart of DJIA futures over the past 6 months with the most likely scenario plotted.
Important items on the economic agenda for the week of Feb. 10 to Feb. 14 :
First up this week is the focus on the release of the important monthly labor figures from the US on Friday at 2:30 pm. The week ahead will again revolve around inflation figures from the US. On Wednesday at 2:30 p.m. the Consumer Price Index and on Thursday at 2:30 p.m. the Producer Price Index. To close out the week, some attention to the release of US retail sales on Friday at 2:30 p.m.
Disclaimer: Investing involves risk. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts' own insights and experiences. They are therefore for educational purposes only.