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

Bearish momentum persists, as investors take flight from equities, with the Fed meeting providing little in the way of optimism.

Data board
Source: Bloomberg

Yesterday’s rally is rapidly fading, as without any dovish support from the Fed and Brexit concerns looming, investors continue to abandon equities for safe havens.

It looks like this will continue into next week’s referendum, with little expected to shift sentiment unless the Remain campaign manages to build a substantial poll lead.

FTSE 100
The index pushed below 5900 in the early morning, but has recovered slightly. However, unless it moves back above 6000, the risk is that the downside momentum will continue to push on down towards 5800, with a close below here taking us towards the January/February lows. A recovery above 6000 would target 6050 in the first instance, and then on towards the 200-day simple moving average (SMA) at 6150.

FTSE 100 daily chart

A push down towards 9440 has brought out the buyers, as key support from the March and April low comes into play. However, bulls will need to get moving back above 9700 to suggest a bottom is in place.

Overall the broad thrust of momentum remains to the downside, so if the price closes below 9440 then we could see a swift move to 9000 in the short-term.

DAX daily chart

S&P 500
The gains yesterday swiftly evaporated in the aftermath of the Fed meeting, and while the index is holding above 2060 for now, the next real area of support comes in around 2040.

Bounces, such as that we saw yesterday to 2085, should still see sellers, so a move back above the 50-day SMA at 2078 is the first step to suggest the pullback has come to an end. 

S&P 500 daily chart

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