Levels to watch: FTSE 100, DAX and S&P 500
The overall picture for indices remains positive, with the DAX in particular testing key trendline resistance.
FTSE 100 holds 7150
The FTSE 100 has struggled to make further progress this week, but managed to hold the 7150 area over several days.
If this continues to hold then we look for a push back towards 7240 and then 7260. The loss of 7150 points towards a deeper retracement towards 7060.
DAX looks to breach trendline resistance
The June downtrend line was challenged yesterday for the first time since September yesterday, as the DAX moved back above 11,450.
While it was not able to maintain its gains, the rebound over the past two weeks has been impressive and doesn’t look like it is about to come to an end. Even a sharp drop towards 11,100 would find support from the December lows, giving the index the ability to attempt another break of trendline resistance.
S&P 500 pushes higher despite wedge formation
The S&P 500 continues to trade in a bearish wedge formation, having found resistance around 2800 earlier in the week, then falling back to support around 2764.
A break of this formation would be regarded as bearish, pushing the price back towards the 200-day simple moving average (SMA) at 2747 and then support around 2730. A break higher from the wedge targets 2820 and the highs from November last year.
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
