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

European markets look robust, but the FTSE 100 has found itself unable to move higher. Meanwhile, in the US, the S&P 500 has rallied to new highs. 

FTSE 100 rally falters

The FTSE 100 was knocked back sharply yesterday, breaking a trend of higher lows seen on an intraday basis since last Wednesday.

Further declines will test support around 7490, where the index bounced last week. Below this, the 7340 level comes into play. A rally will encounter resistance around 7600, and then move on to 7700 and 7800. If 7490 holds then the index remains stuck in its current 300-point trading range.

DAX rallies to 12,400

While we saw a sell-off in the second half of the day yesterday for the DAX, the price has rebounded towards the 12,400 area.

A close above 12,450 would signal that this area of resistance has been broken, and that a push to 12,700 and trendline resistance is underway. A decline below 12,285 would suggest a return to support at 12,100.

S&P 500 maintains its upward momentum

Bullish momentum has revived but we saw a swift push back below 2870 for the S&P 500.

A failure to recover 2860 would signal a fresh move lower, while a move below 2845 would see the 2833 and 2820 levels come into view before the index moves back to key support around 2800.

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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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