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

Risk appetite has diminished ahead of the weekend, with European markets in particular under heavy pressure.

FTSE 100 falters once more

The FTSE 100 has found it hard to cling on to gains above 7750, with a steady decline from the highs of Monday’s session.

The downtrend line from the highs at 7900 remains intact, despite an attempt to break it. Last week’s support at 7590 is now the area to watch, since if this breaks a deeper retracement is likely. Any rebound needs to clear 7700 and close above the downtrend line to signal a move higher is underway.

DAX takes a tumble

The rally here for DAX that seemed so secure two days ago now looks to be under serious threat.

One glimmer of hope would be a close above the 12,650 level and the downtrend line from the May highs that the index broke at the beginning of the week. Further declines below this trendline support bring 12,551 and 12,477 into view. A move back above 12,742 would suggest a rally is back in play.

S&P 500 sees modest losses for a change

Thursday saw the S&P 500’s strong move higher start to falter, with a modest retracement in the futures seen so far this morning.

The first possible area of support is 2740, and then on to 2728. A deeper pullback targets the rising trendline from the May lows, around 2720. A push above 2780 brings the 2800 area into play. 

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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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