Over 40 years’ heritage
185,800 clients worldwide
Over 15,000 markets

Levels to watch: FTSE, DAX and S&P 500

Markets look to be following through on Friday’s bearish momentum, although at least in London, clear support is holding for now.

US trader on stock exchange
Source: Bloomberg

FTSE 100 in the balance
There is a sense of a trapdoor moment about the FTSE 100 today, with the index hovering above 6050 this morning. This is a key support area, which prevented further downside throughout May and even in late March/early April.

If this goes then the risk is that we see a swift move to 5900 or even down towards 5600. Intraday oversold conditions might lead to a bounce, but anything below 6200 should still be seen as a selling opportunity. 

FTSE 100 price chart

DAX looking weak
Having dropped through 9730 this morning, the index looks weak, and further downside moves would push it on towards the April low at 9500, and then on down towards 9000 itself.

If the index can clamber back above 9800, bulls may be in with a chance, but it will need solid price action back above 10,000 to reverse the outlook at present. 

DAX price chart

S&P 500 in the hands of the bulls
At the beginning of the month, 2090 held back S&P 500 downside, and it is up to bulls to defend this level now, lest it give way and raise the prospect of a move back towards 2050 (with some potential support around the 50-day simple moving average at 2072).

Below 2050 the next area to watch would be around 2037. A bounce from here would need to clear 2100 and then the high seen last week around 2120 to suggest a new left higher is underway. 

S&P 500 price chart

The information 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 and as such is considered to be a marketing communication.