FTSE 100, DAX and S&P 500 all looking to continue rally
Indices rebounded on Friday, and while trade headlines are still a risk, more gains seem likely.
FTSE 100 targets recent peak
While still down sharply on last week, the FTSE 100 has rebounded from the low seen on Thursday. A push back towards the top end of the current range may now develop, towards 7440, but a longer-term bullish view requires a close above 7450.
Intraday dips on the way towards 7440 may provide other buying opportunities. The bounce from 7130 means that a move back below this level is needed to revive a more bearish view.
DAX looks to make up lost ground
The DAX spent all week recovering from Monday’s drop and while it still has some ground to make up the overall push higher looks to be intact.
For now it seems that the bounce from 12,950 has created a higher low, and with daily stochastics providing a bullish crossover momentum is shifting once again to the upside. A move back below 12,950 would have to occur in order to cancel out the expectation of higher prices.
S&P 500 follows up on v-shaped bounce
The rebound at the end of last week for the S&P 500 was as impressive as the sell-off had been at the beginning. The index is now close to previous all-time highs.
The attempt to drive the price lower ran out of steam around 3080, so bears need to drive the price back below this level to suggest more declines are likely. Trade war headlines appear to be the biggest risk for this market now.
IGA, may distribute information/research produced by its respective foreign affiliates 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.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. 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, and 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.
Please see important Research Disclaimer.
Take a position on indices
Deal on the world’s major stock indices today.
- Trade the lowest Wall Street spreads on the market
- 1-point spread on the FTSE 100 and Germany 40
- The only provider to offer 24-hour pricing
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.