Established in 1974 Over 195,000 clients worldwide Over 15,000 markets

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
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

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 analysts

Aaran Fronda

London
Chris Beauchamp

London
Jeremy Naylor

London
Jingyi Pan

Singapore
Joshua Mahony

London
Joshua Warner

London
Kyle Rodda

Australia
Nyandabeh Ella Vincent

Chicago
Shaun Murison

Johannesburg
Victoria Scholar

London

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% 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, share dealing and stocks and shares ISA accounts provided by IG Markets Ltd, spread betting provided by IG Index Ltd. IG is a trading name of IG Markets Ltd (a company registered in England and Wales under number 04008957) and IG Index Ltd (a company registered in England and Wales under number 01190902). Registered address at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA. Both IG Markets Ltd (Register number 195355) and IG Index Ltd (Register number 114059) 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.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% 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.