All trading involves risk. Losses can exceed deposits.

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

The week has begun in quiet fashion, but the bulls remain in charge after the recovery from last week’s brief wobble.

All trading involves risk. Losses can exceed deposits.
Trader
Source: Bloomberg

FTSE 100 regains ground from last week

FTSE 100 has seen a progressive recovery from the lows of last week, although the index has yet to recover Friday’s early high of 7517.

A move above here would set the bulls’ minds at ease, while a drop below 7420 would be a worrying development, as the index breaches the lower low created on Wednesday. Possible trendline support comes into play around 7460.

DAX opens quietly

DAX continues to hold the gains of last week, with a relatively quiet open providing little in the way of clues. The previous high at 13,095 is the first area to look for support.

The 13,251 high of last week is the only area of resistance before new all-time highs are reached. A pullback to the 12,881-12,954 area should encounter significant support. 

S&P 500 maintains support level

Two attempts over the past two weeks by S&P 500 to break below 2550 have been firmly rebuffed, so for now this remains the support level to watch.

Continuing price action above this level is firmly bullish. We should expect to see the progression of new higher highs and higher lows continue.

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.