FTSE 100, DAX and Dow ease back after huge gains

​FTSE 100, DAX, and Dow start to ease back, following on from Friday’s blockbuster rally.

FTSE 100 pulling back after Friday breakout

The FTSE 100 managed to break through the 7227 resistance level on Friday, bringing about a bullish signal for the index. The rise of the pound has ensured that the index has underperformed recently, yet with the pound weakening against the US dollar this morning, there is a chance we could see that paradigm shift today.

Nevertheless, the index is turning lower in what looks like a retracement of the rally from 7110. As such, this weakness is viewed as temporary, with a deeper decline providing us with a buying opportunity for the index.

DAX starts to ease back after blockbuster rally

The DAX enjoyed an impressive rally to close out last week, with the index reaching a two-month high. With such a sharp rise in play on Friday, the sentiment seems to be shifting as we start this week.

This could simply be a retracement, but given the size of the prior rally, such a retracement could be fairly significant in size. As such, watch out for further downside over the short term, with the retracement phase unlikely to be over yet.

Dow weakening after sharp rally

The Dow Jones similarly gained a huge amount of ground last week, with the improved sentiment around US-China talks driving the index higher. Today represents Columbus Day in the US, yet IG markets remain open nonetheless. The drop we are seeing is similarly likely to be a retracement, yet the size of Friday’s rally points towards further downside to come.

A break through 27,073 would provide us with a wider bullish picture for the index, and that failure to create a new high above 27,073 provides greater confidence that we are due some weakness for the near term.


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. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Seize your opportunity

Deal on the world’s stock indices today.

  • Trade on rising or falling markets
  • Get one-point spreads on the FTSE 100, 1.2 on the Germany 30, and 0.4 on the US 500
  • Unrivalled 24-hour pricing

See opportunity on an index?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on an index?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from one point on the FTSE 100, 1.2 on the Germany 30, and 0.4 on the US 500
  • Trade more 24-hour indices than any other provider
  • Analyse and deal seamlessly on smart, fast charts

See opportunity on an index?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.