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

Indices have rebounded from yesterday’s sell-off, but can they keep up the pace?

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2017-06-16T09:43:13+0100

Trading floor figure

Source: Bloomberg

FTSE 100 - has consolidation come to an end?

Another Friday, and another bounce in the FTSE 100. For the third time in two months the price has tested the water below 7400 and has bounced once again. Resistance lies around 7550 and then at 7600.

The three bounces from 7400 suggest that plenty of buying is coming in to push the market higher, so we may have seen the consolidation come to an end. The more bullish outlook is maintained unless we see a daily close below 7400.

FTSE chart

FTSE chart

FTSE chart

DAX – another run at 12,900?

Yesterday, 12,650 held as support once again continuing a pattern that has held since 6 June for the DAX. If this continues to hold then we could be set for another run at 12,900.

A daily close below 12,650 could open the way to 12,400 or lower, as part of a deeper retracement within a broader uptrend.

DAX chart

DAX chart

DAX chart

S&P 500 potential support at 2400

As at the beginning of the week, a dip to 2420 brought out the buyers. Now the S&P 500 needs to push on beyond 2440 to 2450. A breakout above 2445 would signal that the market is pushing on to all-time highs.

As before, bears need a move below 2420 to even suggest a bigger dip is coming, but 2400 still stands nearby as potential strong support.

S&P 500 chart

S&P 500 chart

S&P 500 chart

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