Levels to watch: FTSE 100, DAX and S&P 500
US markets are stuck in a range, but the FTSE 100 has managed to bounce after days of losses.
FTSE 100 pushes on from bounceback
Yesterday’s rebound put the FTSE 100 price back above the 50-day simple moving average (SMA), recovering the losses of the previous four sessions.
Now the 6920 area and then descending trendline resistance just below 7000 come into play. A breakout from there targets 7127 and then 7279. A more bearish view requires a move back below 6800.
DAX tries to break higher again
The pullback from the DAX's Friday high is still running its course, it seems, though dips below 11,180 have found buyers. If this support level remains in place then 11,250 and then 11,320 come into play, but we need to see a break above 11,250 first.
Yesterday’s attempt ran out of steam, and a second move higher later in the day also ran into resistance around this level. A close below 11,180 suggests a bearish view has developed.
S&P 500 remains in a range
Broadly, a range between 2620 and 2670 is now in place here, with the S&P 500 showing little inclination to extend itself in one firm direction or another. Overnight, the gains have stalled around 2650, but a short uptrend from Monday’s lows is still in place.
Above 2650, the 2670 zone comes back into play, with a daily close above here marking a resumption of the post-Christmas uptrend. Below 2620, the index may continue to move lower, potentially resulting in a retest of the December low.
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