FTSE 100, DAX and S&P 500 mixed in early trading
The new week has begun with small losses for indices, but the bullish longer-term view remains in place.
FTSE 100 tests rising support
The FTSE 100 has come under pressure in early trading, falling back towards rising trendline support from the October low.
This has held several times since the beginning of October, so may provide some support. A close below this line brings previous higher lows into play, at 7250 and 7140. A rebound from support targets last week’s high at 7430 and on to the 7440 resistance level from late September.
DAX slows down for now
Friday’s weakness in the DAX has extended into a new week, with the index testing rising trendline support from early October.
Below this 12,954 comes into view as possible support. Further declines would target 12,800 and then 12,700. The rally does look overextended in the short term, but any pullback would still likely be a buying opportunity. Meanwhile, further gains head towards the January peak at 13,600.
S&P 500 still on the up
US markets clocked up a new record high last week, and look set for further gains into year-end. Admittedly, the S&P 500 looks overextended in the near term, but for now dips continue to be bought.
A move below 3050 would be needed to suggest a more substantial pullback is underway. In the short term, the 3070 area has provided some near-term support, so a test of this may provide another buying opportunity.
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.