Levels to watch: FTSE, DAX and S&P 500

Markets are rallying once more, with the wobble earlier in the week simply being the latest buying opportunity. 

German stock exchange
Source: Bloomberg

FTSE 100 back on the up track

The FTSE has pushed above the rising trendline off the February lows, having held 7260 at the beginning of this week. Now there is only another 80 points or so until a fresh all-time high.

If the price falters around 7370 then a new lower high will be created, but bears will still need to smash through 7260 to suggest that they are in control. A short-term rising trend can be seen from the lows of Monday and then intersecting with yesterday’s low around 7280. Thus we could see a pullback towards 7330 that would give us another buying opportunity. 

DAX getting bullish

We have seen the DAX break out of its recent consolidation, pushing above the 16 March high at 12,179. This leaves the way clear for a push to the all-time high on the index at 12,408.

As we noted yesterday, this breakout suggests that a new bullish picture is emerging. For now the index is probably rather overextended in the short-term, but any pullback towards 12,080 could see fresh bullish momentum develop.

S&P 500 rallying again

It certainly looks like the rally is back on S&P 500. For whatever fundamental reason, the buyers came back earlier in the week, with a close on Monday back above the 50-day simple moving average (SMA) and a push higher yesterday.

We should regard the current move as indicative of further gains in the uptrend, which should thus continue unless we get a close below this week’s low of 2320.

IGA, may distribute information/research produced by its respective foreign marketing partners 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 IG 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.

See important Research Disclaimer.

Find articles by writer