FTSE 100, DAX and S&P 500 all rise from Tuesday’s low
Indices have recovered some ground after yesterday’s weakness but are at risk of further declines.
FTSE 100 downtrend gathers pace
The FTSE 100 has a lower high in place from the beginning of the week but, while it dropped yesterday, it did not go near the low from last week around 5550.
The index is bouncing in early trading, but unless it can break trendline resistance from the 14 April high then the bearish view remains in place. Certainly, a lower high below 5800 would add to the negative outlook for the index in the short term. Alternatively, a push through 5800 breaks trendline resistance, but a move through 5850 is needed to provide a more bullish view.
DAX now in trading range
The DAX sell-off stalled above 10,200, yesterday, a similar result to last week’s drop. Then the index bounced back to 10,800, so we will see if it repeats this feat.
With two attempts to break 10,800 and two drops to 10,200, we now have a trading range in place. A break above 10,800 brings the March gap down around 11,200 into view, while a drop below 10,200 signals more weakness in the direction of 9995 and then potentially 9400.
S&P 500 rallies from Tuesday’s low
The S&P 500 weakness saw it fall to 2720, moving below the 2760 area that marked the low last week. thus, a lower low is in place.
If the index cannot recover 2820 today, it risks creating a lower high, confirming the short-term bearish view. Below 2720, the price targets 2630, eating into the gains from the first half of the month.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, 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. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Seize your opportunity
Deal on the world’s stock indices today.
- Trade on rising or falling markets
- Get one-point spreads on the FTSE 100
- Unrivalled 24-hour pricing
See opportunity on an index?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on an index?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from one point on the FTSE 100
- Trade more 24-hour indices than any other provider
- Analyse and deal seamlessly on smart, fast charts
See opportunity on an index?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
