FTSE 100, DAX and S&P 500 all in the red
Indices have continued their downward move this morning, picking up where they left off on Friday.
FTSE 100 fights to hold 50-day SMA
The FTSE 100 has suffered a sharp pullback, losing 9% from last week’s highs. However, it has managed for now to hold at the 50-day simple moving average (SMA) at 5963. A close below this could be viewed as a negative development, suggesting a drop back towards 5720 or down to 5600 and the support zone from early May.
For now this looks like a drawdown within a rising market, after the solid move higher of early May, a move below 5600 would certainly negate that view. Alternatively, if the price can hold 5960 then a recovery above 6100 might suggest that a higher low has been created.
DAX falls to two-week low
Here too the DAX is seeing a severe and rapid drop from the recent highs. Around 1400 points have been wiped off in a week, although this still only leaves the index at two-week lows.
Friday’s bounce to 12,200 met with heavy selling, creating an intraday lower high, reinforcing the short-term bearish outlook. Further declines head towards 11,400 and the upper bound of the March gap down, and then below this we have the 100-day SMA at 11,366 and then the 50-day SMA at 11,112.
S&P 500 retreats further after recent falls
The S&P 500 fell through trendline support in spectacular fashion on Thursday, and a small bounce on Friday failed to gain much traction.
Further declines this morning have taken the index to its lowest level in a month, with further downside targets at 2874 and then 2815. A recovery above 3000 might provide a more near-term bullish view.
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.
