What is the outlook for indices in 2020?

2019 has been a year of recovery for equity markets, and there seems more to come, given how dips throughout the year have been furiously bought.

FTSE 100

The FTSE 100 may not have had the spectacular 2019 enjoyed by the S&P 500, but the index may be on the cusp of a breakout following its rally from 7100. The price is challenging trendline resistance from the May all-time high at 7903.

A breakout above this targets 7600, and then leaves 7796 as final resistance before 7903 itself. This year has seen support develop around 7100 and 7000, forming higher lows as the price pushes higher from the 2018 low at 6540.


July and August saw some impressive downward moves in the DAX, but the overall move higher is intact. It has been a spectacular year for the index and now it seems the 2018 peak at 13,601 will be tested in due course.

Recent weakness towards 13,000 has found buyers, and while a possible megaphone formation is in play, the longer-term trend is intact.

S&P 500

2019 has marked an impressive turnaround from the volatility of 2018 for the S&P 500, as the price hits new record highs.

Trendline support from the 2018 low comes into play around 3080 in the event of any significant pullback, while below this 3030, the highs of summer 2019, form potential support. It has proven to be a fools’ errand to try and call a top in this index, and so further record highs seem likely in due course.


It is a similar story here, with the Dow Jones continuing to rally from the lows of December last year, and trendline support comes into play around 27,370.

A dip in early December found support and buying pressure around 27,400, and so this may also be support again in the event of any weakness ahead of the next earnings season.

Nasdaq 100

December 2018 saw the Nasdaq bottom out at 5800, and since then the index has gained almost 50%. A dip to 8165 in early December found support, providing a cushion for a bounce over the following three weeks.

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 30, 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 30, 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

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.