Article by IG Senior Market Analyst Axel Rudolph
FTSE 100, DAX 40, S&P 500 Analysis and Charts
FTSE 100 slips on risk-off sentiment
The FTSE 100 trades back in negative territory for the year as it is impacted by the knock-on effect of a five-month low for China’s Caixin services PMI which hit sentiment in Asia. Last Thursday’s low at 7,459 may thus be revisited. Below it lies the May trough at 7,433.
Resistance above Monday’s low at 7,514 can be seen along the 200-day simple moving average (SMA) and at this week’s high at 7,562 to 7,569. While it caps, the FTSE 100 should remain under pressure.
FTSE 100 Daily Price Chart
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DAX 40 continues to slide this week
The DAX 40 shot up strongly at the end of last week to finish the second quarter on a high and early this week rose to 16,211 before coming off again as sentiment deteriorated on weaker data and Germany’s trade surplus falling to a five-month low. The 8 June low at 15,886 may thus soon be tested, a fall through which would push the 15,710 late June low back to the fore.
Good resistance above the 29 June high at 16,000 comes in between the late May and early June highs at 16,080 to 16,115.
DAX 40 Daily Price Chart
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S&P 500 back from Independence Day holiday
The S&P 500 is expected to trade on a weaker footing as markets re-open after Tuesday’s Independence Day holiday ahead of the publication of the Federal Reserve (Fed) minutes and as China imposes export curbs on metals used in semiconductors and EVs. This points to some renewed US-China tensions. The June peak at 4,447 is to be revisited, below which there is no support to speak of until Thursday’s high at 4,405.
Only a bullish continuation and rise above last week’s 14-month high at 4,458 could lead to the April 2022 high at 4,513 being reached.
S&P 500 Daily Price Chart
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