Charting indices: could indices sell off once more?

The recovery we saw last week on the FTSE100 could be short-lived. What looked like a bounce back appears more and more to be just a retracement after this morning’s move lower.

It now seems to be heading back towards the September 24 low at 5,950 points, which could be an important support. A similar move can be seen on the German DAX, which is now back at its late August lows.

The DAX doesn’t seem to be able to hold any gains at the moment. On the S&P500, key supports have been taken out, which has created a broadening formation, and indicates that the index could go lower once more.

Trade now

Live FTSE 100 | DAX | Dow Jones prices

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.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.