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

European markets suffered last week, but are attempting to rally as the new week gets underway. 

Source: Bloomberg

FTSE 100 takes a knock

The steady pullback for the FTSE 100 over the past few days saw the index hit the 7427 zone of support that held back on 25 October. For now, this remains in place.

Any move higher will potentially find resistance at 7500, and then 7533. Below 7427, 7409 and then 7336 come into play. 

DAX falls back to previous high

The record high for DAX of 13,095 was reached back in the second half of October. The drop last week took the index back to this level, which continues to hold for now.

Below this, 12,954 and then 12,900 are possible support areas. The uptrend remains intact, so continued weakness remains a buying opportunity, unless we see a firm move below 12,500.

S&P 500 sails onwards

While European markets took a knock last week, the US barely noticed a downward move. A swift drop for S&P 500 to 2565 on Thursday brought out the buyers once more.

Therefore, it will be up to the bears to get the price back below this level as a first step to more downside. Below this, 2553 and then 2544 are possible areas of support. 

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.