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

Good data from the US and positive noises about stimulus in Japan continue to lift equities, with new all-time highs in US markets likely this afternoon.

Data charts
Source: Bloomberg

FTSE 100

​The index is pushing above 6600 this morning, after Friday’s session took it to the top of the recent 100-point range. A close above 6600 hands the initiative to the bulls, taking the index on to 6715 and then 6800.

For the time being, the post-Brexit breakout above the April 2015 downtrend line is intact, so we should expect dips to be bought. It would need a close below 6400 to really change the outlook here.


The DAX is back at 9800, which is where gains faltered at the end of June/beginning of July. A close above here opens the way to the 10,300 area, where the rallies of late May and mid-June faltered, and then above here the index faces a test of its 2015 downtrend.

A failure to push higher over the coming sessions might suggest a return to the 9300 low of last week, with the late June low of 9200 just below this.

S&P 500

Friday’s breakout and early gains for US futures have put the index at a new all-time high (excluding dividends). Thus, with the index still not overbought on a daily timeframe we should continue to look for dips to be bought.

A close back below 2130 might signal short-term weakness, but for now the advantage lies with the buyers. 

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.