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

UK indices have come back in a cheery mood, but European markets are more hesitant as the next round of French elections looms.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2017-05-02T10:07:24+0100

Indices figures

Source: Bloomberg

FTSE 100 lower high in place

The FTSE is continuing to claw back losses from last week, with the new month getting off to a good start. The first target for the bulls is a move back above the 7303 high from last week. Coupled with a move back above the 50-day simple moving average (SMA) at 7309, such a development would signal another attempt to break the downtrend off the March highs is in play once more.

Bears need to get the price back below 7192 to suggest another push towards the 7090 low from April. At present, the overall trend is downwards, with a lower high in place from last week.

FTSE price chart

FTSE price chart

ftse price chart

DAX awaiting French election

European markets seem to have entered a period of limbo before the second round of the French presidential election. Given that this is still several days away, we may have to endure a few more sessions of aimless wandering for the likes of the DAX.

While 12,517 is the peak from last week, even this has proved too tricky for the index, with upward moves petering out around 12,490. So far there is little sign that sellers will drive the price below 12,408, the necessary first move in any longer term bearish move.

DAX price chart

DAX price chart

DAX price chart

S&P 500 sticks to 2400 for now

The S&P 500 has remained within touching distance of 2400 for the past few sessions, with no sign so far that it is about to move lower. A breakout requires a daily close above 2401, to put the index back in new all-time high territory.

Meanwhile, any bearish move requires a drop below 2370 and then the 50-day SMA at 2364, which would open the way to 2321.

S&P500 price chart

S&P500 price chart

S&P500 price chart

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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.

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