FTSE 100 and DAX look to break higher while S&P 500 holds steady
Indices have rallied off their Wednesday lows, with the FTSE 100 in particular back to crucial resistance.
FTSE 100 back at key resistance
The FTSE 100 has confounded the bears that may have expected further declines after Tuesday’s drop, but instead saw a two-day rally of over 100 points.
A close above 7380 still eludes the bulls however, so they need to take advantage of bullish momentum to close above this level to ignite a move towards the summer highs. A failure to push on above this level would risk handing the initiative back to the bears, assuming the index breaks back below 7270 and rising trendline support from the late August low.
DAX still on the up from mid-week low
The recovery from Wednesday’s low continues here for the DAX.
Continued gains target 12,500, and then a break above this peak would open the way to 12,600 and the July peak at 12,666. The bearish view requires a substantial reversal back below 12,100 and the 100-day simple moving average (SMA) to become relevant once again.
S&P 500 hold steady after recent losses
The S&P 500 continues to see stabilisation around 2980 - the price bounced from Wednesday’s low around 2960, but upward momentum since then has been lacking.
However for now the view is more bullish than bearish, if price action continues to hold above 2960. Further gains target 3000 and then the 3020-3030 highs of the past few months. A move below 2940 suggests more near-term weakness.
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