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

The rebound in tech stocks is lifting the S&P 500, while eurozone markets continue to build on their gains from earlier in the week.

German Stock Exchange
Source: Bloomberg

FTSE 100 in danger of dropping back to 7400

With the pound continuing to strengthen against the US dollar, it has been hard for the FTSE to sustain the election night bounce. Indeed, having failed to break back above April rising trendline, it now looks in danger of dropping back to 7400 or lower.

However, sellers will need to break through the 7480 area that has acted as support since Friday. This would pave the way for a more bearish move. Buyers will want to clear 7560, which would leave us within easy distance of the 2 June all-time high.

DAX at the end of consolidation mode?

It looks increasingly like eurozone markets will be pushing higher after a long consolidation period. The DAX has spent the past six weeks hovering just below 12,900, with sellers unable to hold the market down near 12,500 or lower.

Now the price has recovered and is within 80 points of the previous high. A breakout above here puts us back in all-time high territory. We are still in consolidation mode but this seems to be ending. Only a close below 12,500 would suggest a bigger bearish move is at hand.

S&P 500 - backing to new all-time highs?

A steady recovery off the lows of the week leaves the S&P 500 with only 2442 (yesterday’s high) and then 2446 as the upside targets.

Beyond this, it's back to new all-time highs. Sellers will continue to be frustrated until we see a close below 2400. 

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 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.

See important Research Disclaimer.