FTSE 100, S&P 500 and Nikkei 225 all fall sharply
Global indices have seen a wave of selling, led by tech stocks, with the S&P 500 finally bringing an end to its streak without a 2% daily drop.
FTSE 100 slumps below support
Heavy losses for indices around the globe continue to weigh on the FTSE 100, and the price is dropping through the support zone around 8120 that has held since June.
A close below this and the 100-day simple moving average (SMA) would mark a bearish development and open the way to support at 8044 and then 7976. Buyers will need a recovery back above 8150 to suggest that support has been recovered.
S&P 500 finally ends low volatility run
Yesterday saw the S&P 500 index drop 2% for the first time in 356 trading days, its longest streak since 2017.
The price has returned to the 50-day SMA for the first time since late May. Further declines will test possible support at 5350 and then 5274. A close back above 5500 in the short-term might suggest that a low has formed, and could put the price on course to test recent highs.
Nikkei 225 dives to 200-day SMA
The Nikkei 225 has slumped 11% from its July high to the current low, returning to the 200-day SMA for the first time since 31 October.
This move completely wipes out the gains made in the index from late June. Further declines would head to the 37,000 level last seen in late April.
In the short-term, a close back above 38,000 might suggest a low has been formed, though it would then need to push past the 39,000 area from May and June to solidify hopes of a sustainable bounce.
The information 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 Bank S.A. 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 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.
Seize your opportunity
Deal on the world’s stock indices today.
- Trade on rising or falling markets
- Get one-point spreads on the FTSE 100, 1.2 on the Germany 40, and 0.4 on the US 500
- Unrivalled 24-hour pricing
See opportunity on an index?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on an index?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from one point on the FTSE 100, 1.2 on the Germany 40, and 0.4 on the US 500
- Trade more 24-hour indices than any other provider
- Analyse and deal seamlessly on smart, fast charts
See opportunity on an index?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
