FTSE 100, DAX and S&P 500 mixed in early trading
Indices have lost ground as concerns about new viral outbreaks rise and some Fed members hint at easing off monthly bond purchases.
FTSE 100 struggles below 6000
The FTSE 100 does look at risk of a broader decline as it continues to drop back from 6000.
An overnight bounce for futures has been reversed, with the price heading back below 5900 and potentially forming a near-term top. Further declines below 5870 head towards 5675, then 5630 and 5530. A recovery above 6000 is required to sustain forward momentum.
DAX still under pressure
Over the past three days the DAX has steadily lost ground, recording a lower high yesterday and then falling below rising trendline support from the 4 May low.
A bounce overnight carried the price back to the trendline, but it has already begun to drop, targeting 10,490 and 10,400 in the near term. Short-term trendline resistance from the 11 May high comes into play around 10,750.
S&P 500 goes into reverse
There was a sharp reversal yesterday, although for now the S&P 500 is holding rising trendline support from the 21 April low.
A break below 2830 would clear that line of support, and then bring 2780 and 2730 into view. Alternatively, if the price continues to hold 2840 then a rebound towards 2940 would help to revive the bullish sentiment.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. 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 40
- The only provider to offer 24-hour pricing
Live prices on most popular markets