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, DAX and S&P 500

Indices have rebounded from yesterday’s sell-off, but can they keep up the pace?

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2017-06-16T09:43:08+0100

Trading floor figure

Source: Bloomberg

FTSE 100 - has consolidation come to an end?

Another Friday, and another bounce in the FTSE 100. For the third time in two months the price has tested the water below 7400 and has bounced once again. Resistance lies around 7550 and then at 7600.

The three bounces from 7400 suggest that plenty of buying is coming in to push the market higher, so we may have seen the consolidation come to an end. The more bullish outlook is maintained unless we see a daily close below 7400.

FTSE chart

FTSE chart

FTSE chart

DAX – another run at 12,900?

Yesterday, 12,650 held as support once again continuing a pattern that has held since 6 June for the DAX. If this continues to hold then we could be set for another run at 12,900.

A daily close below 12,650 could open the way to 12,400 or lower, as part of a deeper retracement within a broader uptrend.

DAX chart

DAX chart

DAX chart

S&P 500 potential support at 2400

As at the beginning of the week, a dip to 2420 brought out the buyers. Now the S&P 500 needs to push on beyond 2440 to 2450. A breakout above 2445 would signal that the market is pushing on to all-time highs.

As before, bears need a move below 2420 to even suggest a bigger dip is coming, but 2400 still stands nearby as potential strong support.

S&P 500 chart

S&P 500 chart

S&P 500 chart

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.

Find articles by writer

CFDs are complex 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. Professional Clients can lose more than they deposit.

The value of shares and ETFs bought through an IG stock trading account can fall as well as rise, which could mean getting back less than you originally put in. Please ensure you fully understand the risks and take care to manage your exposure.

IG does not issue advice, recommendations or opinions in relation to acquiring, holding or disposing of a CFD. IG is not a financial advisor and all services are provided on an execution-only basis. This communication is not an offer or solicitation to enter into a transaction and shall not be construed as such.

IG is a trading name of IG Limited a company registered at 2702 & 2703 Level 27, Tower 2, Al Fattan Currency House, DIFC, Dubai, United Arab Emirates. IG is authorised and regulated by the Dubai Financial Services Authority (DFSA) under reference No. F001780.

The information on this site is not directed at residents of the United States, Belgium or any particular country outside the UAE and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.