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

A change from last week, as markets gap higher over the weekend. Is this a potential turning point for eurozone equities, which have been trending lower since June?

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2017-09-11T09:33:36+0100

Market data

Source: Bloomberg

FTSE 100 potentially pushing to top of range again

Another push for FTSE 100, to the top of the recent range at 7450 looks possible, as indices have gapped higher overnight thanks to a lack of further news from North Korea. However, unless this breaks, we are still looking at a continuation of the 7300-7450 zone. A daily close above 7450 opens the way to 7533, and then 7600.

Any move lower would target 7300, and then we would wait to see whether the sellers can maintain downward momentum.

FTSE100chart

FTSE100chart

FTSE100chart

DAX may break current range

A gap up overnight for DAX has taken the index back to 12,400. If the index succeeds in closing above 12,350, then it may well have broken the range that has prevailed since late July. We may even be looking at a trend change, as the downtrend from the June highs comes to an end. A failure to move above 12,400 could be bearish, but a move back below 12,300 would be the real sign that more downside is on its way.

Above 12,400 the 100-day simple moving average (SMA) at 12,462 comes into play, and then on to 12,686 and 12,900.

DAXchart

DAXchart

DAXchart

S&P 500 stuck coming down from August highs

For now, the index for S&P 500 is stuck below the short-term trendline down from the August high. A move above 2480 is likely to break this, and leave the price with only the all-time high (2491) as resistance.

A turn lower could be a bearish sign, but it would need a close below 2450 to put a really negative spin on the outlook.

SP500chart

SP500chart

SP500chart

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