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 100, DAX and S&P 500

Friday’s brief burst of volatility has been followed by gaps higher across the board. A weaker pound is giving the FTSE 100 some room to rally, for a change.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2017-12-04T09:40:37+0000

Video poster image

FTSE 100 tries to climb higher

The FTSE 100 has gapped higher this morning, but is finding it hard, for the time being, to muster further momentum to move on beyond 7370.

If it is able to cross this zone, then the 7409, 7427, and 7448 areas come into play. Last Friday saw a major test of the 7294 area, and for now the buyers are able to hold the line. Below this, 7260, and then 7195 are potential areas of support.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX continues to consolidate

The consolidation phase goes on here for DAX, with dips at the end of last week, below the 12,844 level, seeing buyers emerge, which reinforces the idea that we will move higher in due course.

The first level to breach on the upside is 13,095, and then from here, a daily close above 13,200 is needed to clear the way for another push to the October all-time highs. A close below 12,844 is required to raise the prospect of more losses, down to 12,673.

DAX chart

DAX chart

DAX chart

S&P 500 turns higher

Friday’s price action saw a hefty dose of volatility for the S&P 500, but even this dip was swiftly bought, which tells us a lot about this market.

It has been followed up with a gap higher, as the futures hit new all-time highs. Below 2658, the Friday spike lower found support at 2604, so a pullback towards here may bring out fresh buyers.

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.