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

Facebook’s results last night have helped calm risk-off fears, with indices continuing to recover from the lows of the week.

FTSE 100 weaker in opening moves

Early trading is seeing the FTSE 100 eat into the gains from the latter part of yesterday’s session, although it remains around the point where it started the week, and above support at 7350.

If this holds then a move back above 7400 is on the cards, challenging the 7436 high. Below 7350, the 7300 level comes into play as possible support.

DAX looks to hold 12,400

After moving to 12,300 yesterday, the DAX has recovered and buyers are already pushing the price back above 12,400.

The next targets to watch are 12,477 and then 12,551, with a breakout above 12,650 signaling further bullish momentum. Below 12,300, the index targets 12,115.

S&P 500 steadies after recent weakness

The pullback for the S&P 500 seems to have stabilised around 2620, with some gains overnight.

However, we need to see a move above 2676 to suggest the short-term downtrend from the April high at 2720 has run its course. Below 2620, 2580, the low from early April would be the next target.

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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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