Established in 1974
185,800 clients worldwide
Over 15,000 markets

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

Indices look weak across the board, with the FTSE surrendering the 7300 area and eurozone markets hit by euro strength. Meanwhile, the S&P 500 is suffering the impact of weak performance in the banking sector.

Trader on the phone looking at data screens
Source: Bloomberg

FTSE 100 knocked by pound sterling strength

Strength in sterling knocked the index to its lowest level in over a week, falling below the 7300 level and potentially bringing the great run of the past month to an end.

So far this morning the index is finding resistance around 7260, the daily pivot level, with further potential resistance at 7272, the 200-hour simple moving average (SMA) and then 7299. Possible support lies around 7215, the lows of yesterday’s session, and then down to 7186 and 7145. 

FTSE 100 price chart

DAX still bouncing

The index continues to bounce between 11,440 and 11,680, having essentially gone nowhere since the beginning of the year. The drop back from 11,600 in the early part of the session suggests we will see a move back towards 11,500 and then 11,430.

A bigger drop would raise the risk of a move to 11,296, and then down to 11,154, the 50-day SMA. 

DAX price chart

S&P 500 continues to lose momentum

The rally off the lows of Monday’s session barely managed to raise the S&P 500 by ten points, and it has not even managed to hold that.

Momentum continues to ebb away, exemplified by the bearish performance of the banking sector in Tuesday’s session. The bears, however, have plenty of hurdles to cross, with support possible at 2262, 2257 and then 2253. 

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 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.

Find articles by analysts