CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Levels to watch: FTSE 100, DAX and S&P 500

US markets recovered from an early wobble, while in Europe, indices have resumed their march higher.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2018-05-04T09:31:36+0100

Video poster image

FTSE 100 trend goes on

The FTSE 100 continues to hold around 7500, holding the steep trendline from the April lows.

However, a deeper retracement would likely break this, even if it would require a move below 7350 to negate the series of higher lows. Above 7590 the index targets 7800.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX returns to its rally

European markets were relatively calm yesterday, and the broad upward trend remains intact for DAX.

The rising trendline from the early April lows is also still intact. Above 12,742, the 12,954 level comes into play, and then a move in the direction of 13,600. A break below 12,500 is needed to negate the positive outlook.

DAX chart

DAX chart

DAX chart

Buyers go shopping in the S&P 500

A swift dip for the S&P 500 yesterday to the 2596 level found buyers, thus the sequence of higher lows remains intact.

The daily chart shows the sharp rally off the lows, although we have yet to see a meaningful attempt to break above the 2700 level and the descending trendline off the January highs. Until this happens, we are likely condemned towards a sideways chop.

S&P 500 chart

S&P 500 chart

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.

Find an article

Find articles by writer

CFDS are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

This website is owned and operated by IG Bank S.A. Registered address at 42 Rue du Rhone, 1204 Geneva, authorised and regulated by FINMA.

The information on this site is not directed at residents of the United States and Belgium, or any particular country outside Switzerland and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.