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

While US markets surged off the lows, it is far from clear that the worst is over for equities.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

2018-12-07T10:24:47+0000

DAX

Source: Bloomberg

FTSE 100 still near two-year lows

The FTSE 100 rebounded from the lows, but the overall bearish view remains, having seen the price hit two-year lows yesterday.

The firm rejection of 7100 earlier in the week suggests that the sellers remain in charge, and it already appears that the bounce is fading. Descending trendline resistance continues to cap any upside, and until we move back above 6840, the bearish view remains.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX edges higher after heavy losses

The DAX managed an even less impressive bounce off the lows, and this has already been eaten into so far this morning. The 10,823 and then the lows of yesterday’s session at 10,758 are near-term support.

Rallies have been firmly sold into, so a reversal requires a move above 11,100 level, at least, to end the cycle of lower highs over the past few days.

DAX chart

DAX chart

DAX chart

S&P 500 clambers out of the depths

While the S&P 500 surged off the lows, the overall impression is still bearish. The index remains firmly within the trading range bounded by 2620 to 2820.

Yesterday’s rally took the index off the bottom end of the range, but it is very much a job half-done. For now, the range continues to hold, with no sign that a clear direction has emerged.

S&P 500 chart

S&P 500 chart

S&P 500 chart

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