Levels to watch: FTSE 100, DAX and S&P 500
Yesterday’s sell-off will have some bulls worried, but it is a job half-done by the bears, and already some buying pressure is in evidence.
FTSE 100 edges higher after drop
The FTSE 100 suffered a sharp reverse, dropping back towards the 6840 support area.
Repeated failure to break 7000 suggests a deeper pullback is at hand, with 6800 the first target before 6640. Alternatively, if the index holds 6800 then it is in a range between 6800 and 7000.
DAX stumbles, but uptrend intact
Having broken above the 50-day simple moving average (SMA) last week, the DAX retains some bullish characteristics.
A more bearish view requires a move below 10,800, key support in the middle of January. A recovery above 10,900 would create a higher low and suggest another attempt to push on above 11,300.
S&P 500 recovers from overnight lows
Despite the pullback seen yesterday, the S&P 500 is still in an uptrend, although a recovery back above 2650 is needed to help create a higher low and revive the bullish view.
The areas of support to watch are 2617 and 2595 in the near term.
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.
See an opportunity to trade?
Go long or short on more than 17,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets