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

The bounce in indices seems to be running out of steam, but for now the bears are being held in check.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2017-04-05T09:33:36+0100

German stock exchange

Source: Bloomberg

FTSE 100 at risk of going lower

The current confluence of trendlines and resistance will make life difficult for bulls, but if it does push higher, we will see a step change on the FTSE.

The downward trend off the 7448 all-time high is coming into play already this morning, while the price is now trying to break back above the rising trendline from the Brexit lows. Add to that the 7360 resistance level, the January high, and it might be that a failure here could spell a major turn lower. Downside targets lie at 7260, and then down to 7182. An upside break of 7360 would spell a return to 7448.

FTSE chart

FTSE chart

FTSE chart

DAX in retreat

The retreat from two-year highs continues, with momentum apparently rolling over once more. However, the DAX has yet to fall back to the 12,200 zone that could provide notable support, being the previous high.

A move below this still raises the prospect of a test of support at 12,030 and then 11,893. And then, there is also the rising trendline from the early February lows to contend with, which would likely come into play around 12,030.

DAX chart

DAX chart

DAX chart

S&P 500 puts up a fight

Buyers continue to fight hard to avoid further downside on S&P 500, with a bounce off the lows yesterday confirming that the bears do not have it all their own way.

First 2345 and then the 2017 rising trendline at 2335 would likely provide potential spots for bulls to mount a strong defence, but as earlier in the week, we still need to push through 2380 to really indicate that the rally is back with a vengeance.

S&P 500 chart

S&P 500 chart

S&P 500 chart

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