FTSE 100, DAX and S&P 500 all rally following Draghi speech
Mario Draghi’s speech has resulted in gains for equity markets, although some caution persists ahead of the Fed meeting.
FTSE 100 finds strength to rally
Yesterday saw the FTSE 100 push sharply higher, after a week or so of indecisive price action.
The peak from late April, 7530, is the next target, and from there 7556 and 7644 are areas of potential resistance in the near term. The bullish view remains until we see a move back below the 50-day simple moving average (SMA) of 7343.
DAX hits one-month high
Yesterday’s speech by European Central Bank (ECB) president Mario Draghi prompted the DAX to surge, catapulting itself off the 50-day SMA to hit its highest level in a month.
The 12,420 zone, the high from late April and also September last year may provide some resistance. The uptrend from the June low is back in effect, and a pullback towards previous highs around 12,190 may provide a buying opportunity.
S&P 500 pushes higher at last
The S&P 500 has resolved its consolidation in favour of a move higher, with the price targeting 2940 and then 2960, the latter being the record high.
Potential areas of support are 2880 and then 2869 in the event of another drop.
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