Indices struggle in early trading
Despite some signs of a recovery overnight, indices remain under pressure ahead of the FOMC.
FTSE 100
The FTSE 100 is attempting to revive its fortunes after three sessions of losses, attempting to find support at 7230, previously resistance during the summer.
In addition it is holding the 50-day simple moving average (SMA) for now, providing some additional short-term relief.
As yet, however, a renewed push higher is still lacking, but a rally above 7300 would help to build a more bullish view.
DAX
Yesterday’s strong start ebbed away throughout the rest of the session, but the DAX has stabilised again, holding Monday’s lows.
We look for a recovery of 15,800 to help put the December bounce back on track, while a more bearish, or at least neutral view, builds with a reversal below 15,500 and the 200-day SMA.
S&P 500
The S&P 500 retreated from yesterday’s highs but overall it remains in strong form, consolidating after the leap higher earlier in the month.
Only a move back below 4600 would be firmly bearish, but some volatility may well persist until after the Federal Reserve meeting this week.
Having bounced from 4500 the uptrend is still firmly intact.
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