Major Indices Talking Points:

• FTSE 100 continues its decline
• DAX falls through trendline support
• S&P 500 drops heavily from record high

FTSE 100 Continues its Decline

The FTSE 100 continued its short-term bearish run and on Thursday saw its biggest drop year-to-date amid weaker-than-expected flash PMI data for May, especially in the services sector. Further downside pressure is seen on Friday as UK retail sales fell by 2.7% YoY in April versus an expected -0.2% fall.

A potential downside target is the late April high at 8,200 while no rise above Thursday’s high at 8,385 is seen.

FTSE Daily Chart

Source: IG, ProRealTime, prepared by Axel Rudolph

DAX 40 falls through uptrend line

The DAX 40 is on track for its third consecutive day of losses, having slid through its April-to-May uptrend line.

Minor support sits at the 4 April 18,429 high ahead of the 24 to 29 April highs at 18,240 to 18,238.

Resistance can be seen along the breached uptrend line at 18,666.

DAX Daily Chart

Source: IG, ProRealTime, prepared by Axel Rudolph

S&P 500 drops heavily from record high

The S&P 500 has swiftly come off Thursday’s record high at 5,343 and slid by over a percent as strong US flash PMI data increased expectations that interest rates will remain higher for longer, leading investors to shy away from risky assets.

A fall through Thursday’s low at 5,257 would put the 10 May high at 5,239 on the map, below which lies the mid-May low at 5,194. Were it to be fallen through as well, a medium-term top may be formed.

Minor resistance above Wednesday’s low at 5,286 is seen at last week’s 5,319 high.

S&P 500 Daily Chart

Source: IG, ProRealTime, prepared by Axel Rudolph

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