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

Equities continue to endure a short-term pullback, with no sign so far of a real turnaround.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2017-11-15T09:24:39+0000

US trader

Source: Bloomberg

FTSE 100 continues to lose ground

So far there is little end in sight for the pullback, with the FTSE 100 testing the water below the 200-day simple moving average (SMA) for the first time since late September. Possible areas of support come into play around 7360, and then 7294, on the daily chart.

Intraday rallies such as that we saw yesterday, which briefly took the index back above 7400, are continuing to meet heavy selling for the time being. Bulls will need to see a move back above 7427 (the 25 October low), in order to be confident that a bounce has legs.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX drops below key support

DAX’s current zone of 12,954 was staunchly defended earlier in the week, but it is under threat this morning, along with the 50-day SMA at 12,921. The risk for bulls is that 12,678 is the next area of potential support, being the mid-July peak.

A close back above 12,954 would be a good first step for the bulls, but in reality we need to see a close back above 13,200 to be sure that the rally is back in action.

DAX chart

DAX chart

DAX chart

S&P 500 edges towards support

The S&P 500 remains above the lows from last Thursday’s session at 2565, and if this gives way 2544 is the next area of possible support.

This market has seen pullbacks towards the 100-day SMA, which currently sits at 2498. So a broader drop, more similar to what we have seen in Europe, may take this index down another 70 points or so. If 2565 holds, then 2583 and 2597 come into play.

S&P 500 chart

S&P 500

S&P 500 chart

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