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

The week is seeing plenty of volatility on both the upside and the downside, with much of the focus being on the travails of Deutsche Bank. However, it is beginning to look like the buyers have arrested the decline and are now poised to push the market higher. 

Source: Bloomberg

FTSE 100 could drop to mid-September low

It has not been a week for the faint-hearted, with rallies and slumps in equal measure for the index, with today seeing a bounce.

Nonetheless, we still have a pattern of lower highs and lower lows, so we will need to see a break of yesterday’s highs around 6870 to indicate that a new upward leg is in progress. Otherwise support comes in first around 6800 and then at yesterday’s lows of 6770.

If 6770 is breached then we could see a move down towards the mid-September low of 6634. 

DAX pushing higher

This market tends to stand or fall by what happens to Deutsche Bank, and with the news of an asset sale the shares, and hence the index, are pushing sharply higher.

Yesterday’s peak around 10,460 is already being tested, with a firm move above here potentially leading on to a test of 10,550 and then 10,700. A move lower would encounter some support at 10,362 and then around the key support zone of 10,263, yesterday’s lows and the area where the index bounced in mid-September.

S&P 500 eyes 2160

US markets seem to have shaken off the bearishness seen at the beginning of the week, and as a result are now set for a move back to the highs of last week. The S&P 500 spent yesterday trying to break through 2160, but it appears to be succeeding in this mission today.

The 2140 level provided a firm line of support yesterday, with 2136 just below it, so until these are broken the buyers look to be in charge. 

S&P 500

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.