FTSE 100, DAX and S&P 500 all start the week with gains
As December begins, indices are moving higher, as volumes return following the US Thanksgiving holiday.
FTSE 100 recovers in early trading
Friday’s thin and directionless session saw the FTSE 100 drop back from the 7440 zone that has acted as resistance since late September.
However, early trading this morning has seen the price recover some ground. A daily close above 7440 is still needed to generate a more bullish view; continued failure to move above this level increases the risk of a move back towards 7200. Above 7440, 7550 and 7640 come into play. Intraday trendline resistance from the 27 November peak means that the price must breach 7400 to indicate that the bulls are regaining control.
DAX hitting range top
The DAX continues to show little inclination to break out of its range. Since 7 November, it has traded, with two brief breakouts, between 13,100 and 13,300.
This continues to look like a consolidation after the big gains of October and early November, since the dip below 13,100 was quickly bought. Seasonality continues to favour the bulls here, but we need a daily close outside of the 13,100-13,300 range to provide a clear indication of what may happen next.
S&P 500 back to normal service
The US returns to normal trading today after the Thanksgiving holiday and Friday’s shortened session. The bulls have maintained their iron grip on the S&P 500, with very little in the way of downside over the past month or more.
The drift over the past few days has now run into possible trendline support from 10 October, which may provide a foundation for more gains. Otherwise, a drop back towards 3100 may provide support.
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