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

Further gains for the DAX have helped create a more bullish outlook for the index.

Source: Bloomberg

FTSE 100 recovers

Last week saw the FTSE 100 drop back from record highs, but the buyers mounted a defence of the 7700 area.

If this holds then we look towards 7800 as the next target, while further declines below 7700, and then below 7684, would suggest a bigger move towards 7600 is in play. 

DAX aims for fresh highs

A late surge on Friday carried the DAX to new highs for the month. Further upside would target 13,533, and then on into new record highs.

Support is possible around 13,400, 13,211 and then 13,095. The creation of a new high within the context of the rally from the January lows remains a bullish sign.

S&P 500 unmoved by shutdown

Much of the focus today will be on the government shutdown, but the S&P 500 does not seem too perturbed.

The four-hour chart posted new higher lows and a higher high last week, and it would need a move below 2768 to put a dent in the smooth move higher.

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.