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.

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

Indecision reigns ahead of the Fed meeting, with indices unwilling to move too far in any direction.

Market data trader
Source: Bloomberg

FTSE 100 very hesitant

The FTSE's rally off yesterday's lows failed to take out its daily high above 7380. Overall the price has failed to push above the 7400 area that marks resistance.

However, the bears have yet to take out the 7259 low – it needs a close below this level to suggest that more losses are in store. For now, the rally is still intact, but pre-Federal Reserve meeting hesitancy has dominated all week and could continue to do so today.

DAX still stuck

The DAX is stuck in the middle of its recent range, but the lack of an attempt to break 12,068 suggests that a push to the lower end of the range, in the zone of 11,917-11,927, could be seen soon.

Bears will need to break through here to open the way to a bigger drop, with a first target at 11,800 a possible area of support. 

S&P 500 finds support

The S&P 500 dip found support around 2358, but the subsequent bounce was unable to keep moving to the recent high at 2380.

We wait for a break of 2358 to confirm the bears are in charge. If this line remains firm, then we could see a push back to 2400 in due course. 

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.

Find articles by writer