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

US markets touched a new record high yesterday, but in Europe a rallying euro is weighing on the DAX. 

The City of London
Source: Bloomberg

FTSE 100 entering a new bullish phase

Having broken 7452, the FTSE moved on to break above the downward trendline that has held since 2 June, the latest such incident this year. Thus, 7553 and then 7600 are the new areas of potential resistance.

A new bullish phase looks to have begun, with a drop back below 7400 the absolute minimum needed to put a more bearish spin on things.

DAX dragged down by the strong euro

Continued euro strength has made life very difficult for European markets, the DAX chief among them.

Support has been provided at 12,408 over the past month, with a deeper retracement at 12,310 likely to bring out more buyers. It will require a breach of 12,600 to put the index back above the descending trendline off the mid-June highs. Below 12,310 the index could see a drop to 12,179 or 11,893. 

S&P 500 remains bullish

A new intraday record high for the S&P 500 confirms that we are still looking to buy the dips as and when they occur.

It will need a push below 2427 to even put a dent in the sunny outlook.

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.