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

Friday’s brief burst of volatility has been followed by gaps higher across the board. A weaker pound is giving the FTSE 100 some room to rally, for a change.

Chris Beauchamp ChrisB_IG
Market Analyst, London

2017-12-04T09:40:37+0000

FTSE 100 tries to climb higher

The FTSE 100 has gapped higher this morning, but is finding it hard, for the time being, to muster further momentum to move on beyond 7370.

If it is able to cross this zone, then the 7409, 7427, and 7448 areas come into play. Last Friday saw a major test of the 7294 area, and for now the buyers are able to hold the line. Below this, 7260, and then 7195 are potential areas of support.

FTSE 100 chart

DAX continues to consolidate

The consolidation phase goes on here for DAX, with dips at the end of last week, below the 12,844 level, seeing buyers emerge, which reinforces the idea that we will move higher in due course.

The first level to breach on the upside is 13,095, and then from here, a daily close above 13,200 is needed to clear the way for another push to the October all-time highs. A close below 12,844 is required to raise the prospect of more losses, down to 12,673.

DAX chart

S&P 500 turns higher

Friday’s price action saw a hefty dose of volatility for the S&P 500, but even this dip was swiftly bought, which tells us a lot about this market.

It has been followed up with a gap higher, as the futures hit new all-time highs. Below 2658, the Friday spike lower found support at 2604, so a pullback towards here may bring out fresh buyers.