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

Q2 has started on a very sour note, with indices moving swiftly lower.

Source: Bloomberg

FTSE 100 drops lower
Early weakness here has seen the index careen to the lows of its range, down towards 6100, with support possible around the 6084 level where it bounced on Tuesday. A break below here threatens a swift move to 6000, and then 5950.

Bulls might manage to hold the index up today, but will need to get back to 6200 and then close above it to ensure that the rally continues.

DAX struggles to break higher
9800 has seen bearish momentum stall over the past few weeks, so if this holds we will watch for a bounce back above the rising trendline (i.e. through 9900), that might then set the index up for a move back towards key resistance in the 10,100 area.

A drop through 9800 risks a swift move first to 9564, and then if this fails to hold, all the way down to 9254.

S&P 500 looks to head down
It is still unwise to predict that the rally has ended here, but we have seen a sequence of lower-highs since Janet Yellen’s speech. If the index drops below 2040, bearish momentum may accelerate, taking the index down towards 2021 and then 2004.

Upside targets lie around 2075 in the first instance, and then on to 2092. 

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.