All trading involves risk. Losses can exceed deposits.
40-year heritage
152,600 clients worldwide
10,000 markets to trade

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

US markets have performed well so far this week, but the FTSE 100 remains becalmed around 7100.

All trading involves risk. Losses can exceed deposits.
German stock exchange
Source: Bloomberg

FTSE 100 looking lazy, but could bounce  

As long as we continue to hold 7091 then the possibility of a late April bounce increases.

The FTSE has shown little desire to move on towards initial resistance at 7152, so while these levels hold the outlook seems little changed. Below 7091 we could see the 200-day simple moving average (SMA) at 7025 tested.

FTSE chart

DAX about to rebound?

A push above 12,060 would be needed to suggest that we have the makings of a bigger rebound for the DAX, which would then suggest a move back to 12,120 in the first instance.

A break of 12,179 would end the sequence of lower highs we have seen since the beginning of April. Bears need to break below 11,956 to suggest more downside, with 11,893 and 11,850 then coming into play. 

DAX chart

S&P 500 recovering

A steady recovery off the lows of the week has seen S&P 500 move back to the 50-day SMA (2358). Another push higher will put us back above this level, and see the index test the downtrend line around 2365.

Beyond this, 2370 and then 2378 come into play. A move back below 2350 could raise the prospect that bullish momentum has been lost and that a test of 2335 and then 2325 is on its way. 

S&P 500 chart

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, 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. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Find articles by analysts

Education

  • Forex trading

    Discover how the world’s largest and most liquid financial market operates. We explain how international currencies are traded and give you the key facts you need to know before you enter this popular market.

  • Pricing

    Without shares there could be no stock markets, which are vital to every national economy. Find out how the shares trade enables companies to expand and develop, while providing sources of income to private investors and larger funds.

  • Before you trade

    Psychology is a key element of financial trading, and how you perceive and react to your trading can have a major impact on your success. In this module we go through some elements of trading psychology and identify a few common mistakes to watch out for.