FTSE 100, DAX and S&P 500 all looking to continue rally

Indices rebounded on Friday, and while trade headlines are still a risk, more gains seem likely.

FTSE 100 targets recent peak

While still down sharply on last week, the FTSE 100 has rebounded from the low seen on Thursday. A push back towards the top end of the current range may now develop, towards 7440, but a longer-term bullish view requires a close above 7450.

Intraday dips on the way towards 7440 may provide other buying opportunities. The bounce from 7130 means that a move back below this level is needed to revive a more bearish view.

DAX looks to make up lost ground

The DAX spent all week recovering from Monday’s drop and while it still has some ground to make up the overall push higher looks to be intact.

For now it seems that the bounce from 12,950 has created a higher low, and with daily stochastics providing a bullish crossover momentum is shifting once again to the upside. A move back below 12,950 would have to occur in order to cancel out the expectation of higher prices.

S&P 500 follows up on v-shaped bounce

The rebound at the end of last week for the S&P 500 was as impressive as the sell-off had been at the beginning. The index is now close to previous all-time highs.

The attempt to drive the price lower ran out of steam around 3080, so bears need to drive the price back below this level to suggest more declines are likely. Trade war headlines appear to be the biggest risk for this market now.

This information has been prepared by IG, a trading name of IG Markets 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.

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

Prices above are subject to our website terms and agreements. All share prices are delayed by at least 20 minutes. Prices are indicative only.

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.