S&P 500, DAX 30 & FTSE 100 Analysis and News
- S&P 500 | Weakness Showing After Topside Rejection
- DAX | Rally to Fade?
- FTSE 100 | Risk of Pronounced Pullback
S&P 500 | Weakness Showing After Topside Rejection
Signs of weakness beginning to show for the S&P 500 after rejecting the key resistance zone at 2890-2900. Much of the upside in the index has been relatively light in volumes, suggesting that the recent gains have been somewhat corrective. That said, near-term support is situated at 2790-2800 with a break below raising the likelihood of a slide towards 2730. On the topside, above 2900 would put 2933 in focus.
| Change in | Longs | Shorts | OI |
| Daily | -2% | -3% | -2% |
| Weekly | -5% | 7% | 2% |
S&P 500 Price Chart: Daily Time Frame
Source: IG Charts
DAX | Rally to Fade?
In recent sessions, the DAX has continued to find support on dips to 10,200. As such, this would be the first hurdle for sellers to overcome and extend a move south of the 10,000 level where a close below the 23.6% fib could confirm a near-term top. That said, we would look for a retest provided resistance at the 50% Fibonacci retracement situated 10,900 holds. Failure to hold however, would likely put the 11200-400 gap in focus, which risk capping rallies in the index.
| Change in | Longs | Shorts | OI |
| Daily | -1% | -1% | -1% |
| Weekly | -7% | 15% | 10% |
DAX 30 Price Chart: Daily Time Frame
Source: IG Charts
FTSE 100 | Risk of Pronounced Pullback
The FTSE 100 posted modest losses of over 1.2% for the week, which in turn has raised the risk of a more pronounced pullback from its corrective rally. As the FTSE 100 trades below the 38.2% Fibonacci retracement, focus on the downside is at 5510 with key support at 5350. Failure to hold would confirm a near term bearish set up with risks towards a move south of 5000.
| Change in | Longs | Shorts | OI |
| Daily | 1% | 2% | 1% |
| Weekly | 7% | -8% | 2% |
FTSE 100 Price Chart: Daily Time Frame
Source: IG Charts
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--- Written by Justin McQueen, Market Analyst
Follow Justin on Twitter @JMcQueenFX
