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

Indices have struggled to add to gains so far this morning, as euphoria fades following the victory of Emmanuel Macron in the French election.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2017-05-08T09:19:36+0100

indices figure

Source: Bloomberg

FTSE 100 stuck at 7309

Overnight gains for futures have disappeared, and the FTSE 100 finds itself stuck below the 50-day simple moving average (SMA) at 7309. The peak was marked by 7309 from 26 April, after which the index moved back to support at 7192. We may see this play out once again.

A recovery to 7340 would help reverse the bearish outlook, although the price still has to break the downtrend line off the March all-time high that has stymied progress on the daily chart.

FTSE chart

FTSE chart

FTSE chart

DAX buyers will likely step in

An all-time high last week for the DAX confirms the strength of the uptrend, but with the French elections out of the way some selling is being seen.

Nonetheless it will take a move back below 12,400 to even suggest a bigger move lower is at hand, and until that happens dip buyers will likely continue to step in. In the short term, 12,600 looks to be an area where buyers could re-enter, having been an area of support on Friday.

DAX chart

DAX chart

DAX chart

S&P 500 daily close above 2400 necessary to see buyers back in charge

The S&P 500's rally of the April low around 2325 took the price all the way back to resistance at 2400. Despite a brief push above this last week the price continues to be stuck at this point.

A daily close above 2400 would be the necessary signal that the buyers are back in charge. Otherwise, we look to support at 2370, and then the 50-day SMA at 2367.

S&P 500 chart

S&P 500 chart

S&P 500 chart

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