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

Markets stabilised on Friday, with sharp pushes higher so far this morning, potentially indicating that the September weakness is over.

US traders
Source: Bloomberg

FTSE 100 pushes higher

Friday’s price action saw the price stabilise above 6700, with a push higher so far this morning taking the price above the 11 September peak of 6770.

A close above here adds further to the idea that the September dip is over, with the 6820 area the first resistance level to watch for. Above this, the 6880/6900 zone comes into view.

A steady rising trend off the 15 September low remains in place, with Friday’s low around 6695 providing the first test. A move back towards the trendline may therefore bring out fresh buyers. 

FTSE 100 chart

DAX struggles to make gains

Although Friday saw a dip to 10,250, the price has clambered back above 10,300, which was a key support level over the past week. So far this morning, the index is showing reluctance to move higher in line with its peers, but the sharp mid-September fall does appear to be at an end.

A continued push higher would target resistance at 10,450 and then 10,550, and then we would look to 10,800 and the peaks from August and September.

A move back through 10,300 would muddy the water, but it would need a push below 10,250 to suggest the sellers are back in control.

DAX chart

S&P 500 tests resistance level

The index found support at the 100-day simple moving average (SMA), currently 2124, throughout the past week, and is now testing Thursday’s resistance level at 2150.

Above here, the 12 September high of 2160 is a key one to watch, since it was so firmly held. A move through here would then suggest a return to 2190. The next areas to watch on the downside are 2130 and then, as well as the aforementioned 100-day SMA. 

S&P 500 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 Bank S.A. 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.