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

After weakness yesterday buyers have returned, although with an increasingly nervous eye on tomorrow’s Federal Reserve meeting.

The New York Stock Exchange
Source: Bloomberg

FTSE 100 stabilises after yesterday’s rout

Sellers drove the market lower throughout the session yesterday, but the rout has appeared to stabilise around 6870.

A bounce from here will need to clear 6924 and then push on to 6980. A close below 6924 targets 6829, 6774 and then down to the lows of last week at 6678. 

DAX met by buyers

So far, yesterday’s bounce has been met by buying, with the 11,145 area acting as support. The immediate levels to watch are 11,286 and then 11,327, with the December 2015 peak at 11,430 the major obstacle to further upward progress. A break below 11,145 would head towards 11,090 and then 11,025.

DAX traders may want to keep a weather eye on the US dollar index and EUR/USD. The latter may be poised for further gains that could put pressure on European indices.

S&P 500 aims at another all-time high

The index doesn’t really see pullbacks at present, just small dips that still get bought. Nonetheless, with the Federal Reserve tomorrow, indecision is likely to rule the day in US indices.

A break above 2266 will put us back in new all-time high territory, while bears will need to get the price below 2235 to suggest more weakness is on its way. 

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.