CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

FTSE 100, DAX and S&P 500 all rally from Friday low

Friday’s late surge has continued today, as indices stage a turnaround from last week’s selling.

FTSE 100 rockets from last week’s low

After the sell-off comes the bounce, but for how long? The FTSE 100 has gained almost 5% from Friday’s lows, but this only puts a small dent in the losses suffered.

Every rally has to begin somewhere, and with the price back above the December 2018 low at 6530, we may see some bullish momentum return. Last week saw the index remain firmly below the 50-hour simple moving average (SMA) at 6695 until Friday, and for now the price is holding above this. If it can clear previous lower highs at 6930 and 7040 a more bullish view may emerge.

DAX finally finds support

Here the 11,700 level has acted as support, with the DAX having spent Friday furiously building a base above this level.

Like the FTSE 100, the DAX has also managed to move back above the 50-hour SMA (12,108), something that eluded it all last week. Lower highs at 12,496 and then 12,600 are coming into view on the upside, but the real tell for now will be if the price manages to create a higher low, helping to provide a firmer foundation for any bounce.

S&P 500 surges from Friday low

After one of the worst weeks in its history, the S&P 500 managed to bounce on Friday and has pushed higher so far today.

This only takes back some of the ground lost since 20 February, and it could easily continue to fall, but at least now we have a support level and a low to work with. Further intraday higher highs and higher lows will signal the creation of a short-term rally, with 3070 an initial target. A possible bullish stochastic crossover on the daily chart will be viewed as another welcome signal for the bulls.

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Seize your opportunity

Deal on the world’s stock indices today.

  • Trade on rising or falling markets
  • Get one-point spreads on the FTSE 100
  • Unrivalled 24-hour pricing

See opportunity on an index?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on an index?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from one point on the FTSE 100
  • Trade more 24-hour indices than any other provider
  • Analyse and deal seamlessly on smart, fast charts

See opportunity on an index?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.