FTSE 100, DAX and S&P 500 struggle to continue their rallies

Gains have stalled in indices, as some of the bullishness from earlier in the week is replaced with caution.

FTSE 100 bounce runs out of steam

The bounce from Thursday’s lows has stalled, with the FTSE 100 price falling back yesterday.

If it can hold 5920 then a move higher may resume, targeting 6140 and then 6200, the peak from the end of April. Having twice held 5650 this month, sellers will need to drive the index below this level to ensure a bigger drawdown develops.

DAX drops back from 11,200

For the DAX as well, the rally has run into resistance as it has fallen back from 11,200.

While much of the bounce since last Thursday is still intact, a reversal below 10,900 could signal a push back towards 10,500 or even 10,200. A more bullish view prevails if the price can clear 11,200 and then clear 11,300 and the highs from late April.

S&P 500 remains in month-long range

Having rallied to 2980, the S&P 500 price has fallen back, leaving the trading range of the past month broadly intact.

Further declines bring 2760 into view, the lower bound of the current range. Meanwhile, a move above 2980 would break the range and open the path to more gains.

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.

Take a position on indices

Deal on the world’s major stock indices today.

  • Trade the lowest Wall Street spreads on the market
  • 1-point spread on the FTSE 100 and Germany 30
  • The only provider to offer 24-hour pricing

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.