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

There has been little respite for the FTSE 100, although the DAX has managed to rally off the lows for now.

FTSE 100 still unable to rally

The declines continued yesterday for the FTSE 100, although the pace has slowed.

Having opened below 7340 support, the price now looks to the 7280 lows from the end of November last year. Below this, 7195 and then 7127 come into play. A close back above 7340 would provide a more bullish view.

DAX bounces from four-month low

The next major area of support for the DAX is 11,700, with a recovery above 12,100 needed to provide a more bullish view, as this would breach yesterday’s highs from early on in the session.

A failure to move above 12,100 suggests that more downside is likely.

S&P 500 dips to a three-day low

The S&P 500 has returned to the 2880 level and for now is holding around it.

Further declines take us to the 50-day simple moving average (SMA) at 2830 and then the 2800 area that held so strongly throughout July and August. A recovery above 2890 would indicate that this period of weakness has likely run its course.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research 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.

Find articles by analysts