FTSE 100, DAX and S&P 500 all rise from Tuesday’s low

Indices have recovered some ground after yesterday’s weakness but are at risk of further declines.

FTSE 100 downtrend gathers pace

The FTSE 100 has a lower high in place from the beginning of the week but, while it dropped yesterday, it did not go near the low from last week around 5550.

The index is bouncing in early trading, but unless it can break trendline resistance from the 14 April high then the bearish view remains in place. Certainly, a lower high below 5800 would add to the negative outlook for the index in the short term. Alternatively, a push through 5800 breaks trendline resistance, but a move through 5850 is needed to provide a more bullish view.

DAX now in trading range

The DAX sell-off stalled above 10,200, yesterday, a similar result to last week’s drop. Then the index bounced back to 10,800, so we will see if it repeats this feat.

With two attempts to break 10,800 and two drops to 10,200, we now have a trading range in place. A break above 10,800 brings the March gap down around 11,200 into view, while a drop below 10,200 signals more weakness in the direction of 9995 and then potentially 9400.

S&P 500 rallies from Tuesday’s low

The S&P 500 weakness saw it fall to 2720, moving below the 2760 area that marked the low last week. thus, a lower low is in place.

If the index cannot recover 2820 today, it risks creating a lower high, confirming the short-term bearish view. Below 2720, the price targets 2630, eating into the gains from the first half of the month.

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

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.