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

Stock markets have enjoyed a good 48 hours, putting a more bullish outlook on things.

FTSE 100 builds on gains of yesterday

Yesterday saw another strong day of gains for the FTSE 100, with the index having rallied by around 2% since the lows of Wednesday.

While there is some early weakness this morning, the steady recovery goes on. It would need a move below 7120 to create a short-term lower low and break the move upward from the 7070 level that has been in place this week. Further gains will target 7300 and then 7400.

DAX recovers strongly this week

A strong trend of higher lows and higher highs over the past week has seen the DAX recover much lost ground.

Further upward moves will encounter the 12,551 – 12,742 zone of resistance. Any pullback that holds above 12,181 remains a higher low and thus a possible buying opportunity.

S&P 500 reaches for late February high

The S&P 500 has also had a good week, Tuesday’s drop notwithstanding.

The price has managed to break above the 2730 area that marked the high over the previous week, so now the late February high at 2790 comes into play. Rising trendline support could be found around 2720, with 2682 below this.

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This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa 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. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.

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