Levels to Watch: FTSE 100, DAX & S&P 500
While US markets have managed to break higher, the same cannot be said for Europe.
FTSE 100 trying to hold gains
While still in an upward channel, the FTSE 100 is starting to struggle below 6900.
Trendline support around 6875 is the first area to watch, followed by 6840, the lows of Monday. Following on from this would be 6776 support, but below 6800 the index starts to look increasingly bearish. A recovery above 6950 puts the upper half of the channel in play, towards 7000 and higher.
DAX stuck below 10,900
DAX's gains above 10,900 have proven impossible to sustain over the past few sessions, while intraday sell-offs have found support at 10,800. A break of this range indicates the next direction, with trendline support around 10,700 coming into play.
Above 10,900, the index will push on above 11,000 but needs to clear the area around 11,020 to maintain upward momentum.
S&P 500 breaches resistance
The 2600 area acted as a barrier to progress over the past few sessions, but the S&P 500 appears to have broken to the upside, and dips continue to be bought.
The zone around 2630 is the next area to watch, marking the lows of October and November before the December sell-off. A drop below the 2560 level would be needed to put a more bearish outlook on the index.
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.
See an opportunity to trade?
Go long or short on more than 16,000 markets with IG Bank.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets
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.