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Levels to watch: FTSE 100, DAX and S&P 500

Risk appetite was hit last night by the developments in Washington, although the shock has faded somewhat. 

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FTSE 100’s rally halted for now

The FTSE 100 fell sharply overnight, but has managed to hold above the lows of the week so far, around 7050.

A bounce this morning has recovered lost ground, but there is much work to do to suggest a new rally is in the offing. A push above 7200 is the first step, but it leaves 7300 and 7400 as resistance. A turn lower heads to 6919.

FTSE 100 chart

DAX hopes to retake lost ground

Yesterday saw a turn lower for DAX in the evening, but the index has found support around 12,000, creating a higher low from the Monday bottom.

Further gains will target 12,280, and then 12,551. Still acting as potential support is 11,908 and then 11,692.

DAX chart

S&P 500 aims to recover from sudden drop

The S&P 500 continues to move higher, despite the reversal yesterday.

Having held 2650, it has now moved on and held the 100-day simple moving average (SMA) at 2677. From here, the next target would be 2750, and then on to 2800. 

US 500 chart

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