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

Early strength sees the S&P 500 rally into an all-time high, while the DAX and FTSE rallies both come into question for contrasting reasons.

Data board
Source: Bloomberg

FTSE rallies from key support

The FTSE bounced up from the 6690 support level on Friday, confounding any calls for a break lower. Crucially, a break below that level would have created an intraday lower low and as such we have instead remained within an uptrend. However, overnight strength is coming under pressure at the open.

Ultimately, the ability to post a new high above 6780 will be key to remaining within this gradual uptrend. Given the flat lining lows, we have seen a warning sign of a potential weakening and as such, the bullish view is only confirmed once more with a break above 6780.

Thus while the uptrend remains intact, the conviction is weaker for now. 

DAX rallies into major resistance level

The DAX has moved sharply higher this morning, with the index rallying into the massive 10,481 referendum day high. The ability to break through this level will dictate the state of play for the day, where an inability to push through could cause a sharp pullback.

Or else, an hourly candle above 10,481 would point towards another leg higher for the DAX. 

S&P 500 finally breaks from range

The S&P 500 has broken through the notable 2178 resistance level overnight, posting a new all-time high. This crucially raises the chance of another strong move higher and as such, while price remains above 2178, we could see further gains come into play.

Also watch out for trendline support (currently 2171) should we see a deeper pullback.

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. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.