FTSE 100, DAX and S&P 500 all struggling in early trading
Last week ended poorly for indices despite the strong NFP reading, and so far this morning bullish sentiment is in short supply.
FTSE 100 on the back foot
The FTSE 100 took a turn back below the 50-day simple moving average (SMA) on Friday, providing a near-term top and resistance for the time being.
A revival back above 7550 would still target 7700 and the early January high. Meanwhile, continued losses will head towards trendline support at 7250, where the index bounced at the end of January. A break below 7200 would signa that the ascending triangle has been broken and that more downside towards 7000 is likely.
DAX stuck below previous peak
European markets have managed to rally near to their highs of January.
However, the DAX’s failure to break 13,600 last week leaves it stuck in a sideways pattern that has prevailed since the beginning of December, with 13,00 still the lower bound of support.
S&P 500 still drifting lower
The S&P 500 hit a new record high last week, but on Friday it began to edge lower once again.
Further losses head towards the 50-day SMA at 3240, with a deeper retracement likely to test 3170 and rising trendline support. A rebound through 3350 puts the index in new record territory.
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