Outlook on FTSE 100, DAX 40 and S&P 500 ahead of Wednesday’s FOMC meeting.

Article written by IG Senior Market Analyst Axel Rudolph

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

​​​FTSE 100 continues to be range bound

​The FTSE 100 continues to sideways trade in a low volatility range as the British economy expands 0.2% in April, recovering from a 0.3% drop in March, and in line with expectations.

​The technical levels to watch for a potential break out of the range are Tuesday’s 7,611 high and last week’s 7,546 low and the 200-day simple moving average (SMA) at 7,545. ​While Friday’s low at 7,546 underpins, the late May and current June highs at 7,655 to 7,660 may still be reached.

FTSE 100 Daily Price Chart – June 14, 2023

​DAX 40 ploughs ahead

​The DAX 40 is still trying to reach its May all-time high at 16,333 as German wholesale prices fall for a second straight month by 2.6% year-on-year in May.

​For the all-time record high to be reached, Tuesday’s high at 16,248 needs to be overcome. Short-term it acts as resistance and as long as it does, a slip back towards Monday’s high at 16,161 may ensue ahead of today’s US Federal Open Market Committee (FOMC) June rate decision and Thursday’s European Central Bank (ECB) anticipated 25 basis-point rate hike.

DAX 40 Daily Price Chart – June 14, 2023

​S&P 500 trades at levels last seen in April 2022

​​On Tuesday the S&P 500 rallied for a fourth consecutive day to its 14-month high at 4,375 ahead of Wednesday’s US Fed rate decision at which the central bank is widely expected not to hike its rates but rather do so in July. ​Above 4,375 lies the minor psychological 4,400 level and further up the 4,421 March 2022 peak. Slips should find support around the August 2022 peak at 4,325.

​If not, a break out of a rising wedge formation could lead to a swift reversal to the downside if last Thursday’s 4,257 low were to be fallen through as well.

S&P 500 Daily Price Chart – June 14, 2023