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

The quarter has started in mixed fashion, but the DAX appears to be unstoppable. 

Canary Wharf
Source: Bloomberg

FTSE 100 providing mixed feelings

The FTSE continues to retreat from the 7390 area that it tested last week. If this marks a new lower high, then we look towards crucial support at 7260 as a potential area where buyers may look to re-enter.

A close below here would indicate that we could be on our way to 7194 and then 7130. Buyers need to push through 7390 and then post a daily close above the recent all-time high at 7448. 

FTSE chart

DAX in ‘nothing can stop me’ mood

Momentum has propelled this index to within a hair’s breadth (in DAX terms) of its all-time high at 12,405. The index is now going through its longest period in overbought territory on the weekly Relative Strength Index (RSI) since early 2015, but there seems no sign yet that the run is at an end.

Bulls can look to 12,179, then 12,081 and 11,900 as potential areas of support. It would take a close below 11,850 to create a new lower low. 

DAX chart

S&P 500 inconsistent

Unlike the DAX, S&P 500 has not been able to display consistent bullish momentum, with some of last week’s gains being unwound on Friday. The uptrend is still intact, but bulls will want to break the descending trendline from the all-time high of late February to be certain that they are still in control.

In the short-term the area around 2380 could prove to be a stumbling block. Nonetheless, it will take a drop below last week’s low of 2321 to suggest that a bigger drop is at hand.

S&P 500 chart

Denna information har sammanställts av IG, ett handelsnamn för IG Markets Limited. Utöver friskrivningen nedan innehåller materialet på denna sida inte ett fastställande av våra handelspriser, eller ett erbjudande om en transaktion i ett finansiellt instrument. IG accepterar inget ansvar för eventuella åtgärder som görs eller inte görs baserat på detta material eller för de följder detta kan få. Inga garantier ges för riktigheten eller fullständigheten av denna information. Någon person som agerar på informationen gör det således på egen risk. Materialet tar inte hänsyn till specifika placeringsmål, ekonomiska situationer och behov av någon specifik person som får ta del av detta. Det har inte upprättats i enlighet med rättsliga krav som ställs för att främja oberoende investeringsanalyser utan skall betraktas som marknadsföringsmaterial.