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

The rally off the lows from earlier in the week has reached a crucial point. Will the bulls prevail or will the bears take charge once more?

DAX figure
Source: Bloomberg

FTSE 100 breaks through 7300 support zone

The FTSE 100 has bounced off the 7300 support zone, but now it needs to push on above 7440. A turn lower below 7400 provides another potential shorting opportunity, with an initial move down to 7300 and then potentially lower.

A close below 7294 would create a new lower low, while a failure to push on above 7400 creates a fresh lower high, a bearish development.

DAX struggles to move above 12,100

So far this morning a push above 12,100 has been defeated and if this marks the point where a new turn lower begins for the DAX, then we look for a move to 11,900, the key support area, and then 11,695 and 11,426 come into play.

We need to see a move above 12,200 to have a more bullish outlook here, otherwise further losses should be expected. 

S&P 500 stuck below 2460

The bounce from the lows of the week has carried the S&P 500 past the highs of the past two weeks. However, for now the index is stuck below 2460.

A turn lower from here would represent a new shorting opportunity, with a possible move back down to 2420. Further gains from here are likely to run into resistance around 2475 and then back to 2490, the all-time high. 

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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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