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

The FTSE 100 is providing rich pickings for bears, while the rally in eurozone and US markets remains in pause mode. 

Wall Street
Source: Bloomberg

FTSE 100 under heavy pressure

Sterling’s rocket-fuelled rise has put severe pressure on the FTSE 100 index, with the drop from 7450 coming as the US and eurozone indices move higher once more. With the 7300 zone broken, and so far no ability to move back above it, the bears may have their chance.

Some support could be provided at 7260, but otherwise we could be looking at further losses, down to 7185 and then 7090. A reversal back above 7300 is needed to put a positive outlook on things.

DAX still consolidating steadily

DAX continues to hold above the 100-day simple moving average (SMA) at 12,466, with no sign of bearish momentum developing. So far the index is still consolidating, but a move above 12,570 would then open the way to 12,700 and 12,880.

Any retracement that holds above 12,300 and perhaps even above 12,200, is still a buying opportunity.

S&P 500 dip quickly passes

An overnight dip for S&P 500, thanks to North Korea, has faded away rapidly, and we now look to see if the index can take out 2500 soon.

There have been few pullbacks, but any that hold above 2470 remain buying opportunities. 

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

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.