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

After several strong days, indices are encountering key resistance levels.  

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FTSE 100 regaining despite resistance

The FTSE 100’s recovery continues, although the 7256 level continues to act as resistance.

Above here, the 7300-7400 zone of resistance comes into play. Given the relentless nature of the move higher over the past two weeks, some softening is to be expected, although a continued hold above 7100 should mean that the outlook still tends towards the bullish end of the spectrum.

DAX stuck below 12,400

The DAX has shrugged off overnight weakness so far, but it remains stalled below 12,400.

A break above here puts it in the no-man’s land of resistance levels running from 12,400, through 12,477, 12,552, 12,663 and then 12,742. Dips have been bought so far this week, so a move below 12,051 is needed to cancel out the still bullish outlook.

S&P 500 struggles at top end of March range

The S&P 500 has stalled below 2650, towards the top end of the range that has held since the latter half of March.

We need to see a firm push above 2670 to suggest a test of the downtrend line from the January highs is in progress. Support levels to watch for come in at 2628, 2596 and 2531. 

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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.