CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money. CFDs are complex instruments. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

FTSE 100, DAX and S&P 500 go firmly into reverse

Indices have taken fright at the spread of the coronavirus, moving sharply lower in early trading after gaping down overnight.

FTSE 100 renews its move lower

The FTSE 100 has bid ‘hello’ to rising trendline support, gapping down on the open and encountering the post-December 2018 line of support that has held three times in recent months (September, December and January).

If this is broken then 7230 comes into view, and then 7130 and 7000 are areas of possible support. Both the daily stochastics and the moving average convergence/divergence (MACD) have rolled over, suggesting the sellers remain in control.

DAX finally moves to the downside

The DAX has finally joined in the general move lower, having fought to hold above 13,600 over the past month. Further losses below possible support around 13,200 target 12,954 and then the 200-day simple moving average (SMA) at 12,650.

This last would also see the post-December 2018 rising trendline tested for the first time since August. As with the FTSE 100, momentum indicators such as stochastics and MACD have turned negative, while we will need to see the price move back above 13,500 to begin to provide a more near-term bullish impression.

S&P 500 drops sharply at start of new week

This morning’s gap lower has carried the S&P 500 back to the 50-day SMA (3284) and below.

Further declines test the area of support around 3210 (blue rectangle), which was tested at both the beginning and end of January. Dips into this area might see buyers emerge, while below this the post-December 2018 rising trendline comes into play, possibly around 3200. The price has moved in a straight line from last Thursday’s highs, so an intraday rebound might see fresh selling pressure, with a move above 3330 needed to close the overnight gap.

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.

Speculate on commodities

Trade commodity futures, as well as 27 commodity markets with no fixed expiries.1

  • Wide range of popular and niche metals, energies and softs
  • Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
  • View continuous charting, backdated for up to five years

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

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.