CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

Levels to watch: FTSE 100, DAX and S&P 500

Friday’s sell-off has abated to a degree, although indices are all still lower this morning.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2018-02-05T09:30:58+0000

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FTSE 100 sees heavy selling

The FTSE 100 sell-off gathered pace mightily last week, with further losses on the open this morning. Downside momentum continued to prevail, with 7294, 7260 and 7195 all in the frame as possible targets.

So far there is little sign of a rebound, but with the breadth so weak the dip buyers will likely have an eye on this index. If the price can stabilise above 7300, there is scope for a recovery.

FTSE 100 price chart

FTSE 100 price chart

FTSE 100 price chart

DAX pushes below late 2017 lows

The drop below the November and December lows for the DAX was a worrying sign, but a recovery back above 12,678 could signal that the buyers are back in charge.

The 200-day simple moving average (SMA) at 12,788, and then 12,844 and 12,954, would be the next targets to watch. Below 12,565, the 12,387 and 12,310 levels come into play.

DAX price chart

DAX price chart

DAX price chart

S&P 500 knocked back towards 50-day moving average

Given the ongoing distance from the price to the 50-day SMA (2725), the shakeout we saw last week was always a high probability event for S&P 500.

Further declines would bring the 50-day SMA into play, followed by 2695 and then 2658. A recovery would mean that the uptrend has resumed, and would see 2800 and then 2807 tested.

S&P 500 price chart

S&P 500 price chart

S&P 500 price chart

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