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

After weakness yesterday buyers have returned, although with an increasingly nervous eye on tomorrow’s Federal Reserve meeting.

The New York Stock Exchange
Source: Bloomberg

FTSE 100 stabilises after yesterday’s rout

Sellers drove the market lower throughout the session yesterday, but the rout has appeared to stabilise around 6870.

A bounce from here will need to clear 6924 and then push on to 6980. A close below 6924 targets 6829, 6774 and then down to the lows of last week at 6678. 

DAX met by buyers

So far, yesterday’s bounce has been met by buying, with the 11,145 area acting as support. The immediate levels to watch are 11,286 and then 11,327, with the December 2015 peak at 11,430 the major obstacle to further upward progress. A break below 11,145 would head towards 11,090 and then 11,025.

DAX traders may want to keep a weather eye on the US dollar index and EUR/USD. The latter may be poised for further gains that could put pressure on European indices.

S&P 500 aims at another all-time high

The index doesn’t really see pullbacks at present, just small dips that still get bought. Nonetheless, with the Federal Reserve tomorrow, indecision is likely to rule the day in US indices.

A break above 2266 will put us back in new all-time high territory, while bears will need to get the price below 2235 to suggest more weakness is on its way. 

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.