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

Lower highs seem to have been created in European markets, while the US has dropped back from the highs of Monday’s session.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2018-10-02T09:34:48+0100

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FTSE 100 on the back foot

The FTSE 100 continues to drop back from the highs of last week, potentially creating a new lower high.

Further declines would bring 7400, 7340 and 7290 into play as zones of support. If the index can move back above 7520 then a more bullish view prevails, but any intraday rally that fails to recover 7520 would likely mark a fresh selling opportunity.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX continues lower

It does seem like a lower high has been created here, as the DAX continues to fall back from the highs of 12,450 from last week.

Yesterday’s rally found sellers, suggesting more bearish pressure, and a push below 12,200 would target 12,165 and 12,102 in the near term.

DAX chart

DAX chart

DAX chart

S&P 500 drops back from intraday highs

A rally yesterday encountered heavy selling pressure, so we may see further declines today for the S&P 500, towards 2900.

Below this, 2877 comes in as possible support. A rally above yesterday’s high at 2937 targets the high of 2941.

S&P 500 chart

S&P 500 chart

S&P 500 chart

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