Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% 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. 71% 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.

Levels to watch: FTSE 100, DAX and S&P 500

Indices are back in bullish form, with key levels being reached for the FTSE 100 and the S&P 500.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2018-07-13T09:33:55+0100

Video poster image

FTSE 100 retakes 7700

The FTSE 100 has shrugged off the weakness from earlier in the week, pushing above 7700 in early trading.

Now it needs to clear 7706-7710 to confirm a real breakout is in play, opening the path to 7800 and 7900. A reversal back below the low of Wednesday around 7560 is needed to put the sellers back in charge.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX recovers from recent weakness

The dip for DAX earlier in the week found support around 12,400, and has now recovered to establish a higher low from the base created at the end of June.

Tuesday’s high of around 12,650 is the next area to watch, and above this the index will be aiming for resistance around 12,954 and the downtrend line from the January high, which would likely come into play around 13,100. Dips continue to be bought, so a close below 12,400 is needed to negate the bullish outlook.

DAX chart

DAX chart

DAX chart

S&P 500 back at crucial level

The bulls will be awaiting today’s session with keen anticipation, as it represents another attempt by the S&P 500 to break above the 2800 area that has held back progress since February.

A close above 2803 would suggest a push to 2900 is back on the agenda. A failure would be short-term bearish, but even then we have seen dip buying throughout the week. The index has succeeded in establishing a new higher high in its still-extant uptrend from the February low.

US 500 chart

US 500 chart

US 500 chart

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

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% 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. Professional clients can lose more than they deposit. All trading involves risk.

The value of shares, ETFs and ETCs bought through a share dealing account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results.

CFD accounts provided by IG Markets Ltd, spread betting provided by IG Index Ltd and share dealing and stocks and shares ISA accounts provided by IG Trading and Investments Ltd. IG is a trading name of IG Markets Ltd (a company registered in England and Wales under number 04008957), IG Index Ltd (a company registered in England and Wales under number 01190902) and IG Trading and Investments Ltd (a company registered in England and Wales under number 11628764). Registered address at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA. IG Markets Ltd (Register number 195355), IG Index Ltd (Register number 114059) and IG Trading and Investments Ltd (Register number 944492) are authorised and regulated by the Financial Conduct Authority.

The information on this site is not directed at residents of the United States, Belgium or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.