CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

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

Indices are slightly lower this morning, but the bullish picture from last week remains intact.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2017-09-25T09:39:34+0100

US 500

Source: Bloomberg

FTSE 100 drops back below 7300

Friday saw the FTSE 100 push back above the 7300 level, but today the market is looking slightly overbought, so the early pullback is no surprise. However, we have had a steady move off the lows of mid-September, with higher highs and higher lows forming on the hourly chart.

Friday’s low at 7233 and then the mid-September low of 7195 are the support areas if the index continues to head lower. A turn higher will target the Friday peak at 7320, and then on to 7360, 7400 and 7450 if the rally pushes on.

FTSE100 chart

FTSE100 chart

FTSE100 chart

DAX unfazed by election

DAX has wobbled following the election, but that is all. While the index is off the 12,650 highs from last week, it continues to hold above the 50-period simple moving average (SMA) on the four-hour chart.

Areas of support to watch for are 12,408 and then 12,310. As long as the index holds above 12,300, it remains poised for further gains.

Dax chart

Dax chart

Dax chart

S&P 500 consolidates ahead of push higher

The S&P 500 has barely budged from record highs. Potential areas of support are 2490 and then 2478, should this slight drop actually turn into a modest downward move.

It is hard to be particularly bearish here unless the index drops back below 2450. Otherwise, further upside will be the order of the day.

S&P500 chart

S&P500 chart

S&P500 chart

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

Disclaimer:

All forms of investments carry risks and trading CFDs may not be suitable for everyone. CFDs are leveraged instruments and can result in losses that exceed deposits, so please ensure that you fully understand, and are aware of, the risks and costs involved. Refer to the Risk Disclosure Statement and Risk Fact Sheet.

IG Asia Pte Ltd (Co.Reg.No. 200510021K) is regulated by the Monetary Authority of Singapore and holds a capital markets services licence for dealing in capital markets products that are over-the-counter derivatives contracts and is an exempt financial adviser.

IG provides an execution-only service. The information in this advertisement does not contain (and should not be construed as containing) investment advice or an investment recommendation, or an offer of or solicitation for a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. You should consider 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.

The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

This advertisement has not been reviewed by the Monetary Authority of Singapore.