All trading involves risk. Losses can exceed deposits.

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

European markets are under pressure again, but in the US indices are holding on to their gains. 

All trading involves risk. Losses can exceed deposits.

FTSE 100 drops below 7700

Monday’s breakout seems but a distant memory, as the FTSE 100 falls back below 7700 and towards the trendline it broke at the beginning of the week.

The failure yesterday to break 7772 signified that a deeper retracement was likely, and that is what we have seen so far. A break back below 7660 would be a bearish development.

DAX rally turns sour

The surge at the beginning of the week has proven to be a false dawn for now, although the DAX is still 200 points higher from Friday’s lows.

A recovery back above 12,850 would send a positive signal, raising the prospect of another test of 12,950. If the price falls below 12,742 then we could see a push back towards 12,600.

S&P 500 stuck below 2790

There has been little in the way of weakness here, but a close above 2790 still eludes the S&P 500.

A move below 2750 is needed to suggest a more bearish outlook is at hand. Above 2790, 2803 and then the 2877 high will come into view. 

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