What is the outlook for indices in 2020?

2019 has been a year of recovery for equity markets, and there seems more to come, given how dips throughout the year have been furiously bought.

FTSE 100

The FTSE 100 may not have had the spectacular 2019 enjoyed by the S&P 500, but the index may be on the cusp of a breakout following its rally from 7100. The price is challenging trendline resistance from the May all-time high at 7903.

A breakout above this targets 7600, and then leaves 7796 as final resistance before 7903 itself. This year has seen support develop around 7100 and 7000, forming higher lows as the price pushes higher from the 2018 low at 6540.


July and August saw some impressive downward moves in the DAX, but the overall move higher is intact. It has been a spectacular year for the index and now it seems the 2018 peak at 13,601 will be tested in due course.

Recent weakness towards 13,000 has found buyers, and while a possible megaphone formation is in play, the longer-term trend is intact.

S&P 500

2019 has marked an impressive turnaround from the volatility of 2018 for the S&P 500, as the price hits new record highs.

Trendline support from the 2018 low comes into play around 3080 in the event of any significant pullback, while below this 3030, the highs of summer 2019, form potential support. It has proven to be a fools’ errand to try and call a top in this index, and so further record highs seem likely in due course.


It is a similar story here, with the Dow Jones continuing to rally from the lows of December last year, and trendline support comes into play around 27,370.

A dip in early December found support and buying pressure around 27,400, and so this may also be support again in the event of any weakness ahead of the next earnings season.

Nasdaq 100

December 2018 saw the Nasdaq bottom out at 5800, and since then the index has gained almost 50%. A dip to 8165 in early December found support, providing a cushion for a bounce over the following three weeks.

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