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

Weakness yesterday continues the trend of the week, namely an inability to push higher for major markets.

Trader looking at data board
Source: Bloomberg

FTSE 100

For the FTSE 100, the past week has been a story of repeated attempts to push above 6700, with each one defeated. We have seen some downside weakness this morning, and as a result, we could witness a move back to 6600, and then down to 6500, should the selling gather pace.

As throughout this week, the bulls require a close above 6700 to open the way to the next big level, around 6820.

DAX

Multiple pushes to 10,200 on the DAX have not resulted in fresh upside momentum, although so far the sellers have not been able to keep downward momentum going. The price essentially finds itself trapped between 10,000 and 10,200, so this is the range to watch today.

A break above the latter would head towards 10,400 and the longer-term downtrend line, while a move below 10,000 points to a test of 9800 and then 9440. 

S&P 500

It is always dangerous to try and call a top after all-time highs. However, we have seen a loss of upward momentum on the S&P 500 over the past two days. As a result, we may see a move to 2150, with a close below here targeting 2120.

A break above 2177 would signal the rally is still ongoing, and 2160 should be closely watched, given that it saw buyers enter earlier in the week. 

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.