FTSE 100, DAX and S&P 500 come under pressure
Indices have staged a reversal, giving back gains from earlier in the week as the market runs out of bullish catalysts.
FTSE 100 stages U-turn
In what should be viewed as a negative development, the FTSE 100 has dropped below the 50-day simple moving average (SMA) at 5881 and has also broken below rising trendline support from the March lows.
This could bring 5500 into view, or down to 5300 as possible support. A reversal back above 5900 is needed to revive the bullish view.
DAX drops back after recent gains
The DAX too has suffered a reverse, although it remains above its 50-day SMA (10,503) for now.
In the event of a deeper sell-off, the price will head towards 10,200, and then down to 9970. If the price holds above 10,200 then a rebound towards 11,00 may take place.
S&P 500 endures a sharp reverse
The S&P 500 has dropped below rising trendline support, reversing the gains from earlier in the week.
Now 2820 and then 2750 come into view as support, with a drop below here targeting 2615. A loss of this latter level would then target 2400. Alternatively, a reversal back above 2900 would revive the flagging uptrend, and suggest another attempt to break 3000.
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.
