FTSE 100, DAX and S&P 500 attempt to stage a recovery

The week has seen indices stall after the strong run at the beginning of June. At present, the rallies are not under threat, but further bullish momentum needs to develop soon.

FTSE 100 edges off recent highs

Upward progress of the FTSE 100 has stalled over the past two days, but with the index now looking to build on gains above 7380, the next target to watch, on the upside is 7530 and the mid-April high.

A move back below the 50-day simple moving average (SMA) of 7346 might suggest some near-term weakness, targeting 7200. Intraday, the price may be creating a higher low, finding support around 7360.

FTSE 100 chart Source: ProRealTime

FTSE 100 chart Source: ProRealTime

DAX attempts to stage early rebound

The DAX rally remains intact here, despite a drop from yesterday’s highs.

The price is continuing to find support at the 50-day SMA (12,093), and if this holds a rebound above 12,200 may result, and from here 12,320 and then 12,400 come into play. A daily close below 11,900 is needed to revive the more bearish view.

DAX chart Source: ProRealTime

DAX chart Source: ProRealTime

S&P 500 stalls after recent rally

So far this week the price of the S&P 500 has been stuck below 2900, although the uptrend is, for the moment, ‘just resting’ rather than being at an end.

The 2870 area has acted as support; a daily close beneath this would begin to suggest a more bearish near-term outlook, while if the price can move above 2910 the buyers will be back in charge. It is usually prudent to assume the current short-term trend will continue until proven otherwise.

S&P 500 chart Source: ProRealTime

S&P 500 chart Source: ProRealTime


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.

This information/research prepared by IGA or IGA Group is intended for general circulation. 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 or 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. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

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 30
  • The only provider to offer 24-hour pricing

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Updated
Change
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

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.

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.