FTSE 100, DAX 40, and S&P 500 Analysis and Charts
Article written by IG Senior Market Analyst Axel Rudolph
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FTSE 100 nears last week’s high
Towards the end of last week the FTSE 100 bounced off its two-month low at 7,433 as the US agreed to raise its debt ceiling, China was preparing new measures to support its property market and solid US labour data but a higher-than-expected unemployment rate at 3.7% and stabilising wage growth gave the US Federal Reserve (Fed) room for a pause in June.
For FTSE 100 bulls to be fully back in control, the high seen a couple of weeks ago at 7,660 would need to be exceeded on a daily chart closing basis this week. Above it lies the 7,679 and 7,706 mid-May lows and meanders the 55-day simple moving average (SMA) at 7,718.
Slips should find around the 26 May low at 7,556 or along the 200-day simple moving average (SMA) at 7,718.
FTSE 100 Daily Price Chart
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DAX 40 flirts with late May high at 16,080
The DAX 40 flirts with its late May high at 16,080, having formed a potentially bullish Hammer formation on the weekly candlestick chart amid broad global risk-on sentiment towards the end of last week.
A rise and daily chart close above the 16,080 high would open the way for the May all-time record high at 16,333 to be reached.
Minor support only comes in around last Wednesday’s high at 15,928, ahead of the breached May-to-June downtrend line at 15,900.
DAX 40 Daily Price Chart
S&P 500 trades near Friday’s nine-month high
On Friday, the S&P 500 rallied to a nine-month high at 4,290, close to its August 2022 peak at 4,325, both of which will remain in focus as long as risk-on sentiment prevails.
With more and more market participants expecting the Fed not to raise rates at the June meeting and helped by a new Chinese stimulus package for its struggling property market, stock markets continue to look for short-term bids. Potential retracements should find good support between the mid-to-late May highs at 4,234 to 4,214.
S&P 500 Daily Price Chart
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