What is the outlook for indices in 2020?

2019 has been a year of recovery for equity markets, and there seems more to come, given how dips throughout the year have been furiously bought.

FTSE 100

The FTSE 100 may not have had the spectacular 2019 enjoyed by the S&P 500, but the index may be on the cusp of a breakout following its rally from 7100. The price is challenging trendline resistance from the May all-time high at 7903.

A breakout above this targets 7600, and then leaves 7796 as final resistance before 7903 itself. This year has seen support develop around 7100 and 7000, forming higher lows as the price pushes higher from the 2018 low at 6540.

DAX

July and August saw some impressive downward moves in the DAX, but the overall move higher is intact. It has been a spectacular year for the index and now it seems the 2018 peak at 13,601 will be tested in due course.

Recent weakness towards 13,000 has found buyers, and while a possible megaphone formation is in play, the longer-term trend is intact.

S&P 500

2019 has marked an impressive turnaround from the volatility of 2018 for the S&P 500, as the price hits new record highs.

Trendline support from the 2018 low comes into play around 3080 in the event of any significant pullback, while below this 3030, the highs of summer 2019, form potential support. It has proven to be a fools’ errand to try and call a top in this index, and so further record highs seem likely in due course.

Dow

It is a similar story here, with the Dow Jones continuing to rally from the lows of December last year, and trendline support comes into play around 27,370.

A dip in early December found support and buying pressure around 27,400, and so this may also be support again in the event of any weakness ahead of the next earnings season.

Nasdaq 100

December 2018 saw the Nasdaq bottom out at 5800, and since then the index has gained almost 50%. A dip to 8165 in early December found support, providing a cushion for a bounce over the following three weeks.

IGA, may distribute information/research produced by its respective foreign affiliates 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.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. 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, and 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.

Please see important Research Disclaimer.

Take a position on indices

Deal on the world’s major stock indices today.

  • Trade the lowest Wall Street spreads on the market
  • 1-point spread on the FTSE 100 and Germany 40
  • The only provider to offer 24-hour pricing

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.