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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% 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. 68% 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.

Indices seek to recover after losses

European markets are making headway in the early part of the session, while US futures are also picking up following the drops earlier in the week.

Source: Bloomberg

FTSE 100

FTSE 100 price action yesterday and so far today has seen the price bounce as it approaches 6900, as buyers step in following the pullback from the arguably-overextended 7150 level. If this area, and 6860, can continue to hold, a new low may develop and a fresh push higher will result. Further declines below 6860 open the way to the 100-day SMA at 6742.

Source: ProRealTime

DAX

The price has bounced from the 50-day SMA, and as with the FTSE 100 a zone of buying has developed, around 15,000 in the case of this index. Continued defence of this level opens up the possibility of a renewed bounce towards 15,400 and higher. Conversely, a loss of 14,900 and then 14,800 clears the way for a bigger drop towards 14,300.

Source: ProRealTime

S&P 500

Losses towards 4100 for this index have been stemmed for the time being, so sellers will need to drive the price on below here to retain the advantage. Below this the 50-day SMA (currently 4057) hoves into view, and previous pullbacks this year have found support at or around this indicator.

Source: ProRealTime

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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.