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.

FTSE 100, DAX and Dow weakening after Monday’s rebound

FTSE 100, DAX, and Dow are starting to build bearish momentum once again, with Monday’s rebound looking increasingly like a retracement.

FTSE 100 consolidates ahead of likely downturn

The FTSE 100 has been consolidating overnight, with the index likely to be pausing ahead of another decline.

The wider trend of lower highs and lows seen throughout August points towards a likely move lower before long, with a break through 7189 required to bring about a new bullish outlook. A bearish picture remains in play, therefore, unless the price breaks through the 7189 level.

DAX reversing lower after deep retracement

The DAX also looks set for another period of weakness, with yesterday’s rally taking the index into the 76.4% Fibonacci retracement level (11,758).

Given the recent creation of lower highs and lows, coupled with the Fibonacci resistance level, further downside looks likely. With that in mind, a bearish outlook is in play here, with a break through the 11,854 swing-high required to negate that view.

Dow grinding lower after recent rebound

Much like the FTSE 100 and DAX, the Dow Jones managed to regain ground on Monday, with the price rising into the 61.8% Fibonacci retracement level. However, we are seeing the price turn lower from that resistance level, in what could be another leg back towards the lower ends of the recent 25,075-26,425 consolidation zone.

The trend of marginally higher lows over the course of August points towards a break below 25,354 being needed to bring a wider bearish signal. Nonetheless, until that happens, it looks likely we will see the price drift lower towards the bottom end of the recent consolidation zone.


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 40, 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 40, 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.