Levels to watch: FTSE 100, DAX and S&P 500
Indices continue to make gains, with intraday weakness usually seeing buyers emerge, even after the sharp gains of the past month.
FTSE 100 still on a tear
The relentless climb goes on here, with the FTSE 100 touching a new three-month high for a short time yesterday.
Crucially, it is now in the zone that marked the limit of gains in October and November. The straight-line move of the past week has yet to see any real weakness, and pullbacks towards previous resistance around 7020 may find support.
DAX reclaims 11,300
The DAX succeeded in breaking out of its recent consolidation yesterday, moving back above 11,300 and pushing above the 100-day simple moving average (SMA) of 11,321.
The next target is the downtrend line from the June highs, which would suggest resistance around 11,500. A drop back below 11,200 would be a bearish development, but even here the index still then encounters support around 11,100.
S&P 500 aiming to challenge 200-day MA
The S&P 500 continues its ascent, although it is still below the 200-day SMA (2743).
It is arguably within a rising wedge formation, with a narrowing trading range as it approaches the apex. This is usually a bearish formation, but the steady rally over the past month should act as an indication of how strong momentum currently is. Above the 200-day SMA the 2810 zone comes into play, the highs from October and November.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
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. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Take a position on indices
Deal on the world’s major stock indices today.
- Trade the lowest Wall Street spreads on the market
- 1-point spread on the FTSE 100 and Germany 40
- The only provider to offer 24-hour pricing
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
