FTSE 100, DAX and S&P 500 struggle in early trading

Early trading has seen indices lose ground, but the picture is unclear as US traders are yet to fully return from their long weekend.

FTSE 100 still on the up due to weaker sterling

A weaker pound continues to help the FTSE 100 to push higher. The price has yet to close above 7300, and until this happens, the index risks a turn lower once again.

Last week saw the price repeatedly recover from 7200, powering it higher. Further gains above 7300 target 7550, and then on to 7700. Below 7200 the 7000 low comes into play once again.

DAX holds on to breakout

The DAX has dropped in early trading, but the overall push higher from last week’s lows remains intact.

If the price can establish another intraday higher low, then bullish momentum may revive and push the index yet higher. Further declines would test 11,600 and then down to 11,400. Rising trendline support from the 26 August lows would see 11,800 as a possible area that will see a bounce if the index continues to weaken.

S&P 500 returns from long weekend

US markets are back in action today, so some pre-market weakness for the S&P 500 is to be expected. However, the broader push higher seen since 26 August is still intact.

The worry for bulls is that the index has not been able to hold above 2940, and thus could return to the 2820 lows if the current August range still holds. A close above 2940 and the 50-day simple moving average (SMA) at 2943 would be needed to confirm the signs that a bottom is in.

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.