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

After a strong finish to Q3, indices are girding themselves for further gains in, what is historically, the strongest quarter of the year.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2017-10-02T09:10:58+0100

US trader

Source: Bloomberg

FTSE 100 maintains rebound from September lows

An excellent end to the quarter saw FTSE 100 cap from the mid-month lows. Now, with the price opening back above the 50-day simple moving average (SMA) at 7375, we look to see if momentum can be sustained. Further targets lie at 7400 and 7450.

It would likely take a drop back below 7300 to reverse the positive outlook, with a return to all-time highs by the end of the year a possibility. Any dip that holds above 7300 should likely be perceived as a buying opportunity.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX’s parabolic rally pauses

The DAX barely paused for breath during September, rallying back to all-time highs, with only the 20 June peak at 12,954 now standing between it and uncharted territory.

Given the near-vertical move over the past week, some reversal would not be surprising, but anything that holds above 12,500 remains a dip to be bought. Bears will have a tough job reversing the momentum seen here in recent weeks.

DAX chart

DAX chart

DAX chart

S&P 500 eyes new highs in Q4

S&P 500 continue to clock up new all-time highs. Any pullback towards 2500 remains a buying opportunity.

Overbought readings in momentum indicates a sign of trend strength, rather than any immediate suggestion of a top.

S&P 500 chart

S&P 500 chart

S&P 500 chart

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