Levels to watch: FTSE 100 and S&P 500
Yesterday’s surge will come as welcome news for the bulls, and might suggest more to come, but already the sellers are looking to resume the downward move.
FTSE 100 fights to hold on to gains
FTSE 100 futures surged yesterday but have edged off the highs in early trading. Rallies have been the cue for selling, so we may see further declines, but if the buyers can hold the lows around 6515 then a tradeable low may be in for now.
However, the surge needs to break back above 6800 to suggest a short-term bottom is firmly in place, and this would then allow the index to target 6920. From here 7000 comes into play, which is descending trendline resistance from the August high.
S&P 500 under pressure after post-Christmas surge
Only time will tell whether this rally for S&P 500 ends up like all the others over the past two months and gets heavily sold into.
Those looking to sell the rally have the overnight peak around 2480, while bulls will be hoping that any pullback results in a higher low that provides an indication that the current bounce may last into the rest of the month.
This information has been prepared by IG, a trading name of IG Markets Ltd 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. See full non-independent research disclaimer and quarterly summary.
See an opportunity to trade?
Go long or short on more than 17,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only
