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.

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

Yesterday’s sell-off will have some bulls worried, but it is a job half-done by the bears, and already some buying pressure is in evidence.

FTSE 100 edges higher after drop

The FTSE 100 suffered a sharp reverse, dropping back towards the 6840 support area.

Repeated failure to break 7000 suggests a deeper pullback is at hand, with 6800 the first target before 6640. Alternatively, if the index holds 6800 then it is in a range between 6800 and 7000.

DAX stumbles, but uptrend intact

Having broken above the 50-day simple moving average (SMA) last week, the DAX retains some bullish characteristics.

A more bearish view requires a move below 10,800, key support in the middle of January. A recovery above 10,900 would create a higher low and suggest another attempt to push on above 11,300.

S&P 500 recovers from overnight lows

Despite the pullback seen yesterday, the S&P 500 is still in an uptrend, although a recovery back above 2650 is needed to help create a higher low and revive the bullish view.

The areas of support to watch are 2617 and 2595 in the near term.

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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.

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