CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved.

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

The quarter has started in mixed fashion, but the DAX appears to be unstoppable.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2017-04-03T09:22:59+0100

Canary Wharf

Source: Bloomberg

FTSE 100 providing mixed feelings

The FTSE continues to retreat from the 7390 area that it tested last week. If this marks a new lower high, then we look towards crucial support at 7260 as a potential area where buyers may look to re-enter.

A close below here would indicate that we could be on our way to 7194 and then 7130. Buyers need to push through 7390 and then post a daily close above the recent all-time high at 7448.

FTSE chart

FTSE chart

FTSE chart

DAX in ‘nothing can stop me’ mood

Momentum has propelled this index to within a hair’s breadth (in DAX terms) of its all-time high at 12,405. The index is now going through its longest period in overbought territory on the weekly Relative Strength Index (RSI) since early 2015, but there seems no sign yet that the run is at an end.

Bulls can look to 12,179, then 12,081 and 11,900 as potential areas of support. It would take a close below 11,850 to create a new lower low.

DAX chart

DAX chart

DAX chart

S&P 500 inconsistent

Unlike the DAX, S&P 500 has not been able to display consistent bullish momentum, with some of last week’s gains being unwound on Friday. The uptrend is still intact, but bulls will want to break the descending trendline from the all-time high of late February to be certain that they are still in control.

In the short-term the area around 2380 could prove to be a stumbling block. Nonetheless, it will take a drop below last week’s low of 2321 to suggest that a bigger drop is at hand.

S&P 500 chart

S&P 500 chart

S&P 500 chart

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