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 week has started with gains, with the end of the month and the quarter potentially providing bullish momentum. 

German Stock Exchange
Source: Bloomberg

FTSE 100 – a new bounce in the making?

Once again the FTSE dipped below 7400, and once again the buyers came out in force to defend the area. Now we see if it can definitively break the descending trendline from the highs earlier in the month. It tried a week ago, and then failed, but perhaps a second time will work out better.

The stubborn refusal to let 7400 go adds force to the idea that a new bounce is in the making. A daily close below 7400 is needed to put a more bearish spin on things. 

DAX another run at the 12,881 – 12,950 area is likely

The daily chart continues to show the ongoing consolidation for the DAX, but the series of higher lows witnessed over the past month or so still points towards bullish momentum.

Now the index looks to be making another run at the 12,881 – 12,950 area, where it has run out of steam since the end of May. Bears would need to break the rising trend of higher lows, which would suggest a close below 12,605 is needed to raise the prospect of a longer-term decline.

S&P 500 a close below the latter would be a sign of weakness

Bulls have had a hard time breaking out of the 2450 zone but it looks to be making another run at it. Over the past two weeks, 2430 and then 2420 provided good support in the S&P 500.

We would need to see a close below the latter to suggest more weakness is likely.

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