FTSE 100 falters while DAX and S&P 500 hold support

The FTSE 100 has been hit hard, falling sharply after encountering trendline resistance. Meanwhile, the DAX and S&P 500 are holding support.

FTSE 100 resumes downward move

The FTSE 100 ran into trendline resistance yesterday and as before, the price sold off - with the move lower intensifying. Further declines test the 7350 low from Tuesday, and below this trendline support at around 7300 comes into play, and then the January low at 7230.

On the hourly chart, the price has dropped sharply, with possible trendline resistance from yesterday’s peak requiring a break above 7430 to provide a more bullish view.

DAX drops back to 13,600

After holding close to 13,800 for a week, the DAX has dropped, and is now testing the 13,600 support zone.

Further losses head towards possible support at 13,460, and then the 50-day simple moving average (SMA), currently 13,410. Other targets to the downside include 13,200 and then 12,954. If 13,600 holds then another rebound to 13,800 is possible.

S&P 500 fights to hold 3350

Thursday witnessed a swift dip towards 3350 for the S&P 500, and while a bounce did take place, the downward move has resumed.

A move below 3340 would clear the area of support which held earlier in the month, bringing 3320 into view, and then the 50-day SMA (currently 3280). A rally back above 3370 would signal a renewed drive higher.

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.