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.

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

After days of consolidation it looks like the buyers are back in charge, at least in Europe and the US.

Data
Source: Bloomberg

FTSE 100 could see 6945

The index has clawed its way off the lows of Monday’s session, but there is plenty of resistance in the short term. The 7194, 7210 and 7236 levels all stand in the way of further gains with the index needing a daily close above 7250 to indicate that a new leg higher is underway.

Bears need to push the price below 7130, which would open the way to 7020 and then 6945.

FTSE

DAX eyes 11,920

European markets have rediscovered their zest for life, with the DAX pushing through its recent high. 11,782 and 11,920 are the next targets to watch on the upside, but those looking for an entry may want to wait until a dip appears before looking for a fresh long position.

A failure to hold above 11,650 could see a return to the bearish outlook here, potentially heading back to 11,482 and then 11,260. 

DAX

S&P 500 could see progress stall

The buyers have reasserted control here as well, with futures already hitting new highs. If the rally is to be reignited then it needs a firm close above 2285. Otherwise, a drop back below 2280 would risk a swift move to 2240 and 2200.

The consolidation appears to have run its course, but earnings season will likely act as a handbrake on further progress for the index.

S&P 500

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.

Find articles by writer

This information has been prepared by IG, a trading name of IG Markets Limited 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. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.