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

After a strong finish on Friday, momentum, breadth and trade talk hopes are all carrying indices higher.

FTSE 100 keeps on rallying

The FTSE 100 recorded a new higher high at the end of last week, with strong intermediate and short-term uptrends. Having cleared the October highs, the index is now testing the 7230 area, which was key support in September 2018.

Above this, eyes will be on the 200-day simple moving average (SMA) at 7297, and from there 7564 and the September high comes into view. In the short term, the index has moved in a smooth uptrend since 8 February, with dips towards the 50-hour SMA finding buyers. A move below 7200 might be short-term bearish.

FTSE 100 chart

FTSE 100 chart

DAX rebound takes it to 11,300

The DAX is back to the 11,300 areas that flummoxed the bulls over the past three weeks.

A move above here challenges 11,400, the early December highs, and also the downtrend line from the June peak. The sharp bounce from 11,000 at the end of last week should indicate that there is plenty of fresh bullish momentum to buy on intraday dips.

DAX chart

DAX chart

S&P 500 rally goes on

Last week saw the S&P 500 break back above the 200-day SMA (currently 2746) and continue its push back towards the 2820 highs from quarter four (Q4) 2018.

Buyers came in around 2730 to propel the index to a fresh high for the year so far, maintaining the uptrend. Above 2820 the index targets 2940 and the all-time highs of October. Dips back towards 2730 may find buying opportunities, but it would take a move back below 2680 to really suggest near-term weakness here.

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.

Take a position on indices

Deal on the world’s major stock indices today.

  • Trade the lowest Wall Street spreads on the market
  • 1-point spread on the FTSE 100 and Germany 30
  • The only provider to offer 24-hour pricing

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Change
Sell
Buy
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

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.

All trading involves risk and losses can exceed deposits. Trading CFDs may not be suitable for everyone so please ensure that you fully understand the risks involved. All trading involves risk and losses can exceed deposits.