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Levels to watch: FTSE 100, DAX and S&P 500

Indices are aiming to rebound after heavy losses yesterday, but the outlook seems doubtful for the FTSE 100 and the DAX. 

Market data
Source: Bloomberg

FTSE 100 – will the 7300 zone hold?

The FTSE 100 balance looks to be swinging back to the bears, with the close back below 7360 yesterday. Bulls must once again hope that the 7300 zone holds, as it has done since late June, otherwise we could see a drop to 7260 or lower over the coming weeks.

Any recovery requires a close back above 7360 and then above 7450. 

FTSE 100 chart

DAX struggling to break through 12,180

Twice so far this month the DAX has tried to break 12,180, with yesterday’s rally marking the second attempt. So far there has been no joy for the bulls. The Monday support of 12,032 continues to hold however, so sellers need to break this to open the way to the July lows below 11,900.

Any rally must clear 12,180 to then raise the prospect of more sustained upside, although even then the price needs to reclaim 12,250 to end the downtrend that has prevailed so far in August.

DAX chart

S&P 500 up to the buyers to push the move further

Yet again buyers stepped in to take the S&P 500 off its lows, so now it is up to the buyers to push the move further and take out the 2480 peak from last Friday.

Otherwise any close below this maintains the new short-term downtrend off the August highs. A turn lower targets 2447 and then 2420. 

S&P 500 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.