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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.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2018-07-18T09:27:38+0100

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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.

FTSE 100 price chart

FTSE 100 price chart

FTSE 100 price chart

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.

DAX price chart

DAX price chart

DAX price chart

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.

S&P 500 price chart

S&P 500 price chart

S&P 500 price chart

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