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

Indices continue to move higher, exemplified by the S&P 500 breaking above previously strong resistance.

FTSE 100 bounces off key support

As was suggested yesterday, the FTSE 100's weakness has been short-lived. The 7550 zone has provided support over the past two months, with yesterday’s dip being followed up by a push higher.

This now brings our attention to the 7700 area, with a move above 7720 signaling that this zone of resistance has been broken. This would bring 7800 and 7900 into play. A move below 7550 is needed to suggest more weakness, which would bring 7500 into view as possible support.

DAX clocks up fresh high for the month

The DAX has taken out last week’s high at 12,642, and is now testing the 200-day simple moving average (SMA) around 12,777.

From here, 12,954, followed by the 13,000 area and downtrend resistance from the January high, become the areas to watch. Rising trendline support may come into play if we see a pullback towards 12,600.

S&P 500 breaches key resistance

Yesterday saw the S&P 500 close firmly above the 2800 resistance zone, which has stymied progress since February.

The index is now targeting the all-time high at 2877. Areas of possible support come in at 2790 and then 2770.

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.