CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

Levels to watch: FTSE 100, DAX and S&P 500

Indices are tumbling this morning, as downtrends for the FTSE 100 and DAX reassert themselves once again.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2017-08-18T09:43:39+0100

German stock exchange

Source: Bloomberg

FTSE 100 – can it break the 7300 area?

An outbreak of risk-off sentiment has seen the FTSE 100 falter at the June downtrend and at the 50-day simple moving average (SMA) at 7419.

With 7360 lost once more, we will see whether the index can break the 7300 area, which would open the way to the 200-day SMA at 7266. Below this a move to 7090, not seen since late April, comes into play. We need to see a recovery of 7400 to become more optimistic about the outlook.

FTSE chart

FTSE chart

FTSE chart

DAX heading back to the June downtrend

It looks like the downtrend from June has reasserted itself on the DAX, with a failure to push above 12,300. Now we look to see if the 200-day SMA (11,993) can provide support as it did last week, or whether we are about to see a drop to 11,893 and lower.

The index needs a daily close above 12,310 to secure a bullish outlook.

DAX chart

DAX chart

DAX chart

S&P 500 could bounce to 2450

Last week’s low has been broken on the S&P 500, so now the 100-day SMA at 2417 comes into play, and below this, 2400 and 2370.

A bounce to 2450 cannot be ruled out, given the intraday oversold conditions, but a bounce and then a failure to push higher could provide a more attractive risk-reward option for bears.

S&P 500 chart

S&P 500 chart

S&P 500 chart

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 IG 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.

Find articles by writer

Disclaimer:

All forms of investments carry risks and trading CFDs may not be suitable for everyone. CFDs are leveraged instruments and can result in losses that exceed deposits, so please ensure that you fully understand, and are aware of, the risks and costs involved. Refer to the Risk Disclosure Statement and Risk Fact Sheet.

IG Asia Pte Ltd (Co.Reg.No. 200510021K) is regulated by the Monetary Authority of Singapore and holds a capital markets services licence for dealing in capital markets products that are over-the-counter derivatives contracts and is an exempt financial adviser.

IG provides an execution-only service. The information in this advertisement does not contain (and should not be construed as containing) investment advice or an investment recommendation, or an offer of or solicitation for a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. You should consider 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.

The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

This advertisement has not been reviewed by the Monetary Authority of Singapore.