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

The rebound in tech stocks is lifting the S&P 500, while eurozone markets continue to build on their gains from earlier in the week.

German Stock Exchange
Source: Bloomberg

FTSE 100 in danger of dropping back to 7400

With the pound continuing to strengthen against the US dollar, it has been hard for the FTSE to sustain the election night bounce. Indeed, having failed to break back above April rising trendline, it now looks in danger of dropping back to 7400 or lower.

However, sellers will need to break through the 7480 area that has acted as support since Friday. This would pave the way for a more bearish move. Buyers will want to clear 7560, which would leave us within easy distance of the 2 June all-time high.

DAX at the end of consolidation mode?

It looks increasingly like eurozone markets will be pushing higher after a long consolidation period. The DAX has spent the past six weeks hovering just below 12,900, with sellers unable to hold the market down near 12,500 or lower.

Now the price has recovered and is within 80 points of the previous high. A breakout above here puts us back in all-time high territory. We are still in consolidation mode but this seems to be ending. Only a close below 12,500 would suggest a bigger bearish move is at hand.

S&P 500 - backing to new all-time highs?

A steady recovery off the lows of the week leaves the S&P 500 with only 2442 (yesterday’s high) and then 2446 as the upside targets.

Beyond this, it's back to new all-time highs. Sellers will continue to be frustrated until we see a close below 2400. 

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