Levels to watch: FTSE 100, DAX and S&P 500

Indices remain weak, although the broader move higher from the March lows is intact. 

FTSE 100 takes a breather

Having cleared the 7340 highs, the FTSE 100 continues to move higher, but is encountering some resistance around 7390 and the 200-day simple moving average (SMA).

A daily close above here would open the way to 7800. A look at the four-hour chart suggests we could see some near-term weakness, given how momentum has begun to falter. However, the price would need to drop back below 7150 to really suggest that the bounce has run its course.

DAX continues to move lower

The DAX has seen a retracement over the past three sessions, testing support around 12,477, with 12,408 below this.

From here the 50-day SMA at 12,283 comes into view. A turn higher targets 12,672.

S&P 500 looks for support

Bulls will have been disappointed to see the S&P 500 retreat of the past few sessions, and for now it does conform to the progression of lower highs seen since the end of January.

However, buyers are stepping in around 2660 for the time being, with 2650 and 2628 as the next levels to watch for. Longer-term gains require a decisive push above 2750. 

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