Skip to content

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

FTSE 100 bucks the trend and remains bid amid jittery Dow and S&P 500 ahead of FOMC

Outlook on FTSE 100, DOW and S&P 500 ahead of FOMC and Non-Farm Payrolls.

Indices board Source: Getty Images

FTSE 100 bucks the trend and remains bid

As other key stock indices saw sharp falls ahead of Wednesday’s FOMC meeting, foreign investors continue to pile into the undervalued UK blue chip index with the FTSE 100 barely taking a knock and trying to reach yet another record high close to the 8,200 mark. Further up lies the 8,301 level which is where the 161.8% Fibonacci extension of the March-to-June 2020 advance, projected higher from the October 2020 low, can be seen.

Support below Tuesday’s 8,120 low sits between the early-to-mid-April highs and last Wednesday’s low at 8,046 to 8,003.

FTSE 100 Daily Chart Source: ProRealTime
FTSE 100 Daily Chart Source: ProRealTime

Dow takes a hit ahead of FOMC

The Dow Jones Industrial Average (Wall Street) dropped back to last week’s low and dipped to at 37,735 on Tuesday as the US employment cost index rose more-than-expected while CB's consumer confidence fell below 100 and the House Price Index ended up hotter than anticipated, all of which is pointing to sticky inflation.

A fall through 37,735 would engage the mid-April low at 37,592, below which lies the April low at 37,237.

Minor resistance can now be encountered around Friday’s 38,050 low.

DOW Daily Chart Source: ProRealTime
DOW Daily Chart Source: ProRealTime

S&P 500 falls out of bed

The US 500’s gradual advance over the past couple of weeks has given way to a sharp sell-off on Tuesday amid pared back US rate cut expectations with the first rate cut now expected to be seen in December. Potential downside targets are the minor psychological 5,000 mark and the 25 April low at 4,990.

Minor resistance sits at the 5,049 mid-February high and at Monday’s 5,088 low.

S&P 500 Daily Chart Source: ProRealTime
S&P 500 Daily Chart Source: ProRealTime

This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa 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.

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

Prices above are subject to our website terms and agreements. Prices are indicative only

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Monday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.