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

US markets are back with a vengeance after Thanksgiving, and early trading suggests late year seasonality is finally starting to take effect, with healthy gains for European markets in the first hours of trading.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2018-11-26T10:12:59+0000

Video poster image

FTSE 100 leaps out of the gate

The FTSE 100 has pushed sharply higher in early trading, having rallied around 100 points from the lows of Friday.

Further gains target 7025 and then 7060, and then on to the area around 7150 that acted as resistance in the first half of November. A breakout above here targets trendline resistance around 7265.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX surges after choppy week

It looks like the DAX has established another bottom above 11,000, consolidating around this area over the past few days and in a similar fashion to the late October price action.

Now we wait to see if the gains can be held, and a push to the 11,700 area of resistance may result. Above this the mid-October peak of 11,560 comes into view. Dips back towards 11,000 would imply another test of this area of support.

DAX chart

DAX chart

DAX chart

S&P 500 starts off the week with a bounce

Now that Thanksgiving is out of the way markets can return to normal trading, and so far US futures are in a positive frame of mind.

If the retest of the October lows of the S&P 500 is now complete then further gains will result, targeting 2700 and then on to 2820. A pullback towards 2630 might provide a buying opportunity, and it would require a firm close below 2600 to suggest that the October lows have been definitively breached.

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 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.