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

US markets are back with a vengeance after Thanksgiving, and early trading suggests late year seasonality is finally starting to take effect, with healthy gains for European markets in the first hours of trading.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2018-11-26T10:12:59+0000

Video poster image

FTSE 100 leaps out of the gate

The FTSE 100 has pushed sharply higher in early trading, having rallied around 100 points from the lows of Friday.

Further gains target 7025 and then 7060, and then on to the area around 7150 that acted as resistance in the first half of November. A breakout above here targets trendline resistance around 7265.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX surges after choppy week

It looks like the DAX has established another bottom above 11,000, consolidating around this area over the past few days and in a similar fashion to the late October price action.

Now we wait to see if the gains can be held, and a push to the 11,700 area of resistance may result. Above this the mid-October peak of 11,560 comes into view. Dips back towards 11,000 would imply another test of this area of support.

DAX chart

DAX chart

DAX chart

S&P 500 starts off the week with a bounce

Now that Thanksgiving is out of the way markets can return to normal trading, and so far US futures are in a positive frame of mind.

If the retest of the October lows of the S&P 500 is now complete then further gains will result, targeting 2700 and then on to 2820. A pullback towards 2630 might provide a buying opportunity, and it would require a firm close below 2600 to suggest that the October lows have been definitively breached.

S&P 500 chart

S&P 500 chart

S&P 500 chart

IGA, may distribute information/research produced by its respective foreign marketing partners 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.

This information/research prepared by IGA or IG Group is intended for general circulation. 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 or 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. In addition to the disclaimer above, 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.

See important Research Disclaimer.

Find articles by writer

Disclaimer:

All forms of investments carry risks and trading CFDs may not be suitable for everyone. CFDs are leveraged instruments and can result in losses that exceed deposits, so please ensure that you fully understand, and are aware of, the risks and costs involved. Refer to the Risk Disclosure Statement and Risk Fact Sheet.

IG Asia Pte Ltd (Co.Reg.No. 200510021K) is regulated by the Monetary Authority of Singapore and holds a capital markets services licence for dealing in capital markets products that are over-the-counter derivatives contracts and is an exempt financial adviser.

IG provides an execution-only service. The information in this advertisement does not contain (and should not be construed as containing) investment advice or an investment recommendation, or an offer of or solicitation for a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. You should consider your specific investment objectives, financial situation or 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.

The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

This advertisement has not been reviewed by the Monetary Authority of Singapore.