Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% 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. 76% 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.

FTSE, DAX and Dow showing signs of topping out

The FTSE, DAX, and Dow show signs of potentially topping out, with all eyes turning to the US jobs report to wrap up a busy week.

Indices Source: Bloomberg

FTSE 100 rises to six-week high

The FTSE 100 has been a notable outperformer in a week that has seen equity markets find themselves under pressure.

A potential stochastic breakdown through the 80 threshold failed to materialise given yesterday’s pop. Thus, the sell signal holds off for now.

This index does stand out as a major outlier thanks to the influence of FX markets, with internationally-focused stocks benefitting from sharp declines in GBP/USD, and a rising EUR/GBP.

Coming off the back of a historic rate hike from the Bank of England (BoE) and warnings of the longest recession in history, the pathway for the pound will be key for the FTSE 100.

While the index could rise further, this current rebound looks to be setting up a bearish reversal. Keep an eye out for a potential turn lower from the 61.8% to 76.4% Fibonacci zone (7244-7371).

FTSE 100 chart Source: ProRealTime

DAX showing signs of having topped out

The DAX is attempting to regain lost ground today, coming off the back of a period that has seen a bearish engulfing pattern signal the potential for a market top.

Coming at the 76.4% Fibonacci resistance level (13465), there is a good chance this current rise is short-term in nature as momentum starts to reverse. Notably, the stochastic oscillator has broken through the 80 threshold, bringing a sell signal that has been historically very timely in nature.

From a data perspective, further warning signs of a German contraction have been provided by a six-month low in factory orders, which fell 4% in the month of September alone.

As such, another bearish turn looks likely before long, with a move up through the 13570 required to raise questions over the validity of this view.

DAX chart Source: ProRealTime

Dow reverses from Fibonacci resistance

The Dow has been heading sharply higher over the course of October, but that appears to have come to a swift end in November, with the index turning sharply lower this week.

With the stochastic falling below the 80 threshold as price reverses lower from the 76.4% Fibonacci resistance level, there is a strong chance that we have topped out here.

Keep a close eye out for the jobs report this afternoon for any signs that the economy is on the turn. A bearish view holds unless price rises through the 34286 swing-high.

DJIA chart Source: ProRealTime

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.

Seize your opportunity

Deal on the world’s stock indices today.

  • Trade on rising or falling markets
  • Get one-point spreads on the FTSE 100
  • Unrivalled 24-hour pricing

See opportunity on an index?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on an index?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from one point on the FTSE 100
  • Trade more 24-hour indices than any other provider
  • Analyse and deal seamlessly on smart, fast charts

See opportunity on an index?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Equities
  • Indices
  • Forex
  • Commodities
website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.

" edit-mode="false" style="--live-prices-table-rows:5" >


Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.