Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% 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 S&P 500 start the week well

Hopes of a rate cut by the Fed, plus the lessening of US-Mexico tensions have helped equities to make further gains this morning.

FTSE 100 back to late May highs

The FTSE 100 continues to rally, returning to the crucial 7370 area that marked the top in late May. A daily close above 7380 creates a new higher high, furthering the bullish impression created by the bounce from sub-7100.

Above 7380, the April peak at 7530 comes into view. A more bearish view requires a close below 7100 something that eluded the bears in May.

DAX crosses above trendline resistance

The DAX rallied hard to trendline resistance from the May peak last week, and so far this morning has opened above the trendline and also above the 50-day simple moving average (SMA) of 12,077. In addition, the daily moving average convergence/divergence (MACD) has turned positive for the first time since the end of April, reinforcing the bullish view.

Further gains target 12,320, the mid-May high, then on to 12,408 and then the May peak at 12,465. Last week saw buying around 11,930, so a move below here would restore a more bearish view.

S&P 500 continues its relentless rally

Last week saw the S&P 500 successfully clear the 2870 area, putting it back above the 50-day SMA (2871), and also move above the 2820 area that was a major stumbling block in the last three months of 2018.

The mid-May high at 2892 is the next target, while above there 2940 and then 2954 are upside targets to look for. Intraday pullbacks have been almost entirely absent for the past week, but even a drop back towards 2840 might still not signal the end of this current rally. A close below 2800 is needed to achieve that objective.

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.