Levels to watch: FTSE 100, DAX and S&P 500
Indices edged back from the Friday highs, but the overall move higher is still intact.
FTSE 100 below 50-day SMA, but uptrend still in place
Having fallen back below the 50-day simple moving average (SMA) of 6899, the FTSE 100 may be at risk of topping out, but early weakness in the futures is being countered with some buying pressure.
If the index can hold the 6880 area then another attempt to push above 6900 may result, and then challenge the high from last week around 7000. The uptrend from the December lows is intact, and we would need to see a drop below 6800 to begin to suggest a top is definitely in for now and that the sellers are in control.
DAX aims for a bounce
Key support for the DAX has been 10,800 over the past few sessions, and for now it continues to hold.
Continued gains target last week’s high above 10,950, and then on to the 50-day SMA at 11,024. A drop back below 10,800 would suggest a move back to rising trendline support from the December lows, around 10,650.
S&P 500 revisits key zone
The S&P 500 is heading back to the area around 2610 that marked the lows in October and November, so it is not surprising to see some hesitancy around these levels.
The upward move is still intact, and the pullback from the Friday high has already seen some buying momentum develop. A clearance of the area around 2610 (the blue rectangle) and the 50-day SMA (2629) would spark further upside. A close below 2560 would be near-term bearish, but a really bearish development would require a drop below 2530.
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.
See your opportunity?
Seize it now. Trade over 17,000+ markets on our award-winning platform, with low spreads on indices, shares, commodities and more.
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.
