FTSE 100, DAX and S&P 500 struggle in early trading
Early trading has seen indices lose ground, but the picture is unclear as US traders are yet to fully return from their long weekend.
FTSE 100 still on the up due to weaker sterling
A weaker pound continues to help the FTSE 100 to push higher. The price has yet to close above 7300, and until this happens, the index risks a turn lower once again.
Last week saw the price repeatedly recover from 7200, powering it higher. Further gains above 7300 target 7550, and then on to 7700. Below 7200 the 7000 low comes into play once again.
DAX holds on to breakout
The DAX has dropped in early trading, but the overall push higher from last week’s lows remains intact.
If the price can establish another intraday higher low, then bullish momentum may revive and push the index yet higher. Further declines would test 11,600 and then down to 11,400. Rising trendline support from the 26 August lows would see 11,800 as a possible area that will see a bounce if the index continues to weaken.
S&P 500 returns from long weekend
US markets are back in action today, so some pre-market weakness for the S&P 500 is to be expected. However, the broader push higher seen since 26 August is still intact.
The worry for bulls is that the index has not been able to hold above 2940, and thus could return to the 2820 lows if the current August range still holds. A close above 2940 and the 50-day simple moving average (SMA) at 2943 would be needed to confirm the signs that a bottom is in.
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