Levels to watch: FTSE, DAX and Dow

Markets have turned positive this morning, although gains are so far relatively muted, reflecting cautious sentiment. 

Data chart
Source: Bloomberg

FTSE 100 foiled by the 6100 area
After yesterday’s heavy falls the index is trying to recover, but continues to have trouble with the 6100 area. To restore the bullish outlook we will need to see a daily close back above 6200, and then on to 6260. For the moment 6000 is providing support, with a close below here pushing the index back in the direction of 5850, and possibly even as far as the lows of the month, below 5800.

The daily pivot at 6079 will be key for the time being, as gains falter above this mark. First line intraday support is available at 5914 and then 5816. 

DAX appears more optimistic
For the DAX, the picture looks a shade more optimistic, as this index looks to move back above 10,100. An immediate target will be the highs towards the end of last week around 10,355, with 10,200 (yesterday’s peak) providing some resistance on the way.

Stochastics continue to point to a topping out on the daily-chart (if we do not get back above 10,200 soon), with the possibility the index will slip back towards 10,000 and then lower towards 9660. 

Overnight gains for US futures have petered out, with those for the Dow Jones stuck short of 16,300. If we get back below 16,184, the daily pivot for this index, then the advantage may well rest with the bears once again.

Immediate support on the daily-chart is likely around 16,050, the lows seen yesterday, while a continued move lower risks testing the lows of last week around 15,685. We would need to see a close back above 16,500 to go some way to putting the index back on a positive footing. 

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.