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

Indices fell back at the end of last week, but some buying has been seen early on in the session.

FTSE 100 starts off in better form

The FTSE 100 has recovered from its weakness, with buyers coming in below 7100. If the price can now push on above 7200 we may have come through the consolidation phase of the past week or so, as the index digested the gains made from the October low.

Further upside targets 7300 and trendline resistance from the August highs. A move back to the 7000 lows of last week may find buyers, but a close below here might suggest that the lows of October will be retested.

DAX moves higher in early trading

Here too the DAX has recovered from its mixed week, having fallen back from the highs of around 11,670, but finding buyers around 11,420.

Further gains will target the highs of last week, with a break above here confirming the bullish view, suggesting that the index is ready to push higher. From here the October highs around 11,860 come into play, and then the 12,100 area and trendline resistance from the June highs. A close below 11,400 would suggest that the sellers are back in charge.

S&P 500 attempts to recover losses

Thursday and Friday saw the S&P 500 fall back from around 2820, where the mid-October bounce faltered.

Given the size of the move from the October lows (more than 8% from the October lows to the November high) this is not necessarily bearish, although it will be important to watch how the price behaves around here. A recovery from the Friday lows is underway, but a close above 2830 is needed to suggest that resistance has been breached. A close back below 2750 would indicate that further losses are likely.

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