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 100, DAX and Dow

The European indices look likely to reverse lower, despite overnight gains. Meanwhile, the Dow is leading the way, with the US index hitting record highs.

FTSE 100 turning lower after recent ascent

The FTSE 100 is turning lower again, following a rally into the 7502 resistance level overnight.

The fact that we saw a fall into the 7446 area negates the creation of higher lows and points towards a potential bearish reversal from here. Given the rally into the 76.4% resistance, this bearish potential carries greater weight. With that in mind, there is a strong chance we will turn lower, with a rally above 7558 required to resume the recent uptrend.

DAX consolidates after Fibonacci sell-off

The DAX managed to reverse sharply lower from both trendline and Fibonacci resistance on Friday, with the index looking to resume the wider downtrend that has been in play over recent months.

The consolidation we are currently seeing looks likely to be a short-term phase before we turn lower once again. A rally up through the 12,500 mark would negate that bearish outlook.

Dow rallies into record high

The Dow Jones has managed to rally through the 26,781 record high, with the index pushing into fresh territory.

The market is likely to continue driving higher as we go forward, with retracements looking like buying opportunities unless we see a break below 26,332 support.

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