Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% 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.

FTSE 100, DAX and Dow turning lower, yet support remains key

FTSE 100, DAX and Dow drop off, yet we await key support to be broken to signal a new bearish picture.

FTSE 100 regaining ground after turn of new year

The FTSE 100 has been regaining ground since the lows seen on the final day of 2019. The fact that this turn occurred around the 76.4% Fibonacci retracement level could point towards another rally into the 7680 peak.

However, the wider picture has seen us respect a descending trendline, pointing towards a potential bearish phase coming into play. With that in mind, we would need to see a break above 7680 to bring about a renewed bullish outlook. Otherwise, a decline below 7525 and 7495 would bring about a bearish outlook, with the pair retracing the wider rally from 7132.

DAX breaking below key support

The DAX is continuing its decline, with sharp falls seen since Thursday’s peak looking likely to extend should we continue to break below 13,072.

This is a point where we see a potential turning point or breakthrough. Should the price sustain below 13,072, it looks likely we will see further declines coming into play. However, until that happens there is a chance that this support provides some upside.

Dow could turn higher after recent retracement

The Dow Jones has been similarly pulling back over recent trading days.

However, the uptrend evident throughout December remains in play, and thus it makes sense to look at this recent pullback in that context. A break below 28,367 would provide a more bearish outlook, yet until that happens there is a chance we could see the index turn higher from this area.

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

  • Forex
  • Shares
  • Indices

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.