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

The FTSE 100 continues its divergence, while the DAX is trying to push through a key resistance zone and the S&P 500 is aiming to move back to recent highs. 

FTSE 100 suffering a mixed morning

The FTSE 100 has pushed lower in early trading, having dropped below the 50-day simple moving average (SMA) at 7657 earlier in the week.

Yesterday’s low at 7598 is the first area to watch, and then below this the 7550 zone is possible support, followed by 7490. This latter level marks the bottom end of the range in which the index has traded since mid-June, and a close below this would mark a bearish development. A push higher targets 7675, and then on to 7800, the top end of the index’s trading range.

DAX bulls maintain control

A rebound from rising trendline support supports a bullish thesis, but the DAX is having trouble breaking through the zone around 12,440.

A push above here would open the way to 12,700 and trendline resistance from the June high, and from here 12,900 comes into play. A drop back would find support at the post-March rising trendline, but if the price drops below 12,292 then the 12,106 low from late June comes into play.

S&P 500 buoyed by rising support

The S&P 500 continues to hold a rising trendline from the June lows, having bounced from support on Monday.

A push above 2845 would target last week’s high at 2863, and from here the all-time high at 2877 comes into play. A break below trendline support would suggest a move back to 2800, where firm support was found in July and in early August.

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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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