Skip to content

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

Europe is once again falling prey to selling, but the S&P 500 is still holding up after a very strong performance earlier in the week.

Trader
Source: Bloomberg

FTSE 100 hit hard on the open

The FTSE 100 is suffering from a bout of early morning weakness, dropping back towards 7000 after faltering above 7060 during the week.

Buyers stepped in earlier in the week around 6980/7000, so this is an area of potential support, while below this 6920 and then 6840 come into view. A move above 7080 opens the way to 7200.

DAX drops sharply towards trendline support

After failing to hold 11,400 earlier in the week, the DAX is on the back foot, testing the waters below 11,300. Dip buyers entered earlier in the week around 11,300, so if the price can recover this sends a signal that buyers are still active.

However, further support is possible from the rising trendline from the 20 November lows, around 11,235. A daily close above 11,400 would send a bullish signal.

S&P 500 edges back from highs

The S&P 500 held its gains yesterday, but little else, and we are seeing some early morning weakness.

However, unlike the FTSE 100 and DAX, which have only managed anaemic bounces, the index is up 4% from the lows, so a pause would not be surprising. The broadly bullish view is maintained unless the price moves back below 2690.

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