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 100, DAX and S&P 500

Mixed fortunes across European and US indices, with the FTSE 100 showing signs of weakness. Meanwhile, the DAX and S&P 500 hit new highs.

IG Analyst

Publication date : 2017-10-18T09:43:06+0100

DAX

Source: Bloomberg

FTSE 100 turning lower once more

The FTSE 100 looks to be turning lower yet again, following a rally into the 7542 resistance level. Given the two recent attempts to break and hold below 7520, we could be seeing the beginning of another attempt to break lower here.

As such, a short-term bearish outlook is in play, where a push up through 7551 would negate this view.

FTSE 100 price chart

FTSE 100 price chart

FTSE 100 price chart

DAX bouncing from trendline support

The DAX managed to break higher yesterday, with the price breaking through 13,027 to negate the bearish connotations brought by the move below 12,977. We now look towards 12,994 as the next bearish breakdown level, which would need to be broken to potentially lead this market on a more protracted move lower.

For the upside, watch out for 13,027, 13,034, and 13,039 as the resistance levels, which must be broken to lead us to another all-time high. For now, the uptrend remains intact, and as such, further upside looks likely.

DAX price chart

DAX price chart

DAX price chart

S&P 500 rallies into wedge resistance once more

The S&P 500 has rallied into trendline resistance again overnight, with the index creating a new record high above 2559. That previous resistance level is now providing support, which could point towards another leg higher and a break out of this pattern.

However, until then there is a good chance we could see the market retrace back towards the lower end of this formation once more.

S&P 500 price chart

S&P 500 price chart

S&P 500 price chart

This information has been prepared by IG, a trading name of IG Australia Pty 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.

Find articles by writer

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You do not own or have any interest in the underlying asset. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Please consider the Margin Trading Product Disclosure Statement (PDS), Risk Disclosure Notice and Target Market Determination before entering into any CFD transaction with us.

The value of shares, ETFs and ETCs bought through an IG share trading account can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results.

Please ensure you fully understand the risks and take care to manage your exposure.

The information on this website is prepared without considering your objectives, financial situation or needs. Consequently, you should consider the information in light of your objectives, financial situation and needs.

This website is operated by IG Australia Pty Ltd. IG Australia Pty Ltd is located on Level 32, Queen & Collins, 376-390 Collins Street, Melbourne, VIC 3000. ABN 93 096 585 410, Australian Financial Services Licence No. 515106. Derivatives Issuer Licence in New Zealand FSP No. 684191, NZBN 9429047618251.

The information on this site is not directed at residents of the United States or any particular country outside Australia or New Zealand and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.