FTSE 100, Dax 40 and S&P 500 Sitting at Two-Week Highs

Article by IG Chief Market Analyst Chris Beauchamp

FTSE 100, DAX 40, S&P 500 Analysis and Charts

​​​FTSE 100 in bullish short-term form

​The rally off the 7300 continued on Thursday, with impressive gains for the index that have resulted in a move back through 7400. ​This now leaves the index on the cusp of a bullish MACD crossover, and could now see the price on course to test the 200-day SMA, and then on to 7700.

​A reversal back below 7320 would negate this view.

FTSE 100 Daily Chart

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Change in Longs Shorts OI
Daily -7% 1% -4%
Weekly -12% 21% -3%

Dax 40 at two-week high

​The index made big gains for a second consecutive day, and with a fresh bullish MACD crossover the buyers appear to be firmly in charge.​The next stop is trendline resistance from the August record high, and then on the declining 50-day SMA, which the index has not challenged since early September.

​A failure to break trendline resistance might dent the bullish view, though a close below 15,000 would be needed to give a firmer bearish outlook. This would then put the lows of October back into view.

DAX 40 Daily Chart

S&P 500 in strong form ahead of non-farm payrolls

​The index has recouped a significant amount of the losses suffered in October, and like the Dax is now barrelling towards trendline resistance and then the 50-day SMA.​Beyond these lies the 4392 peak from early October, and a close above here would solidify the bullish view.

​​A reversal back below the 200-day SMA would signal that the sellers have reasserted control and that a move back towards 4100 could be underway.

S&P 500 Daily Chart

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