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

Facebook’s results last night have helped calm risk-off fears, with indices continuing to recover from the lows of the week.

FTSE 100 weaker in opening moves

Early trading is seeing the FTSE 100 eat into the gains from the latter part of yesterday’s session, although it remains around the point where it started the week, and above support at 7350.

If this holds then a move back above 7400 is on the cards, challenging the 7436 high. Below 7350, the 7300 level comes into play as possible support.

DAX looks to hold 12,400

After moving to 12,300 yesterday, the DAX has recovered and buyers are already pushing the price back above 12,400.

The next targets to watch are 12,477 and then 12,551, with a breakout above 12,650 signaling further bullish momentum. Below 12,300, the index targets 12,115.

S&P 500 steadies after recent weakness

The pullback for the S&P 500 seems to have stabilised around 2620, with some gains overnight.

However, we need to see a move above 2676 to suggest the short-term downtrend from the April high at 2720 has run its course. Below 2620, 2580, the low from early April would be the next target.

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.