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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.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2017-03-29T09:53:21+0100

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.

FTSE chart

FTSE chart

FTSE chart

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.

DAX chart

DAX chart

DAX chart

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.

S&P 500 chart

S&P 500 chart

S&P 500 chart

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