CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Levels to watch: FTSE 100, DAX and S&P 500

It looks like the sellers are taking back control, after rallies yesterday fizzled out.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2017-09-08T09:53:48+0100

Market data

Source: Bloomberg

FTSE 100 turns lower again

The FTSE 100 bounce from the lows of the week seems to have run out of steam at 7409, and now equities are turning lower once more. Downside targets lie at 7360, and then the all-important 7300 zone.

Only a break through here really changes the picture from consolidation to bearish move. A recovery needs to reclaim 7400 to then move on and challenge resistance at 7450.

FTSE100 chart

FTSE100 chart

FTSE100 chart

DAX strength peters out

Pre-European Central Bank (ECB) strength seems to have fizzled out for the DAX here, with the index moving lower from the crucial 12,300 level. Both 12,032 and then 11,900 come into play from here, with the loss of the latter potentially leading to heavier losses in coming weeks.

A close back above 12,300 would reverse the bearish view, and leave the index free to challenge 12,400 and higher, for instance the 100-day simple moving average (SMA) at 12,462.

DAX chart

DAX chart

DAX chart

S&P 500 still stuck low

Despite attempts to rally, the S&P 500 index remains stuck below the gap down from Sunday. It looks like momentum to the downside is gaining strength, although bears will need to push below the 2450 level. Below this 2420 comes into play.

A break above 2480 is needed to put the index back on an upward footing.

SPchart

SPchart

SPchart

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