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

Dip buyers have steadied the ship, but will this be enough to reverse the more bearish outlook?

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2017-05-19T09:21:18+0100

Exchange traders

Source: Bloomberg

FTSE 100 stumbling a little

Yesterday’s bounce carried the FTSE from oversold levels back towards 7500, but the rally stumbled around 7480. So far there is little sign of a push higher from here, but it is only a short distance back to the all-time highs and resistance just below 7540.

A move lower from here could find support at 7409 and 7385. If 7480 turns out to be the first lower high, then we may see a bigger drop, down to 7260 or lower.

FTSE chart

FTSE chart

FTSE chart

DAX buyers running out of steam?

Dip buyers on the DAX also stepped in around 12,500, but their energy appears, for now at least, to be waning around 12,640.

The first resistance level to watch on the upside is 12,660, as this was previously a crucial area of support. A drop back would challenge support at 12,520, before heading on to 12,400 and then the 50-day simple moving average (SMA) at 12,311, which served so well as an area of support in February and April.

DAX chart

DAX chart

DAX chart

S&P 500 below support

The rally from 2345 ran out of steam at 2375, and now the S&P 500 finds itself below previous support at 2370, as well as being just below the 50-day SMA at 2369.

A failure to get back above 2370 on the daily chart might suggest a further move, down to the 100-day SMA at 2339 and then 2321.

S&P 500 chart

S&P 500 chart

S&P 500 chart

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