FTSE 100, DAX and S&P 500 mixed in early trading
The new week has begun with small losses for indices, but the bullish longer-term view remains in place.
FTSE 100 tests rising support
The FTSE 100 has come under pressure in early trading, falling back towards rising trendline support from the October low.
This has held several times since the beginning of October, so may provide some support. A close below this line brings previous higher lows into play, at 7250 and 7140. A rebound from support targets last week’s high at 7430 and on to the 7440 resistance level from late September.
DAX slows down for now
Friday’s weakness in the DAX has extended into a new week, with the index testing rising trendline support from early October.
Below this 12,954 comes into view as possible support. Further declines would target 12,800 and then 12,700. The rally does look overextended in the short term, but any pullback would still likely be a buying opportunity. Meanwhile, further gains head towards the January peak at 13,600.
S&P 500 still on the up
US markets clocked up a new record high last week, and look set for further gains into year-end. Admittedly, the S&P 500 looks overextended in the near term, but for now dips continue to be bought.
A move below 3050 would be needed to suggest a more substantial pullback is underway. In the short term, the 3070 area has provided some near-term support, so a test of this may provide another buying opportunity.
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