FTSE 100, DAX 40 recover, helped by S&P 500 bounce back
FTSE 100, DAX 40 recover, helped by largest S&P 500 gain since early November.
FTSE 100 bounces off November low
On Friday the FTSE 100 slid to its 7,995 November low which offered support. A US-led recovery rally helped the UK blue chip index to rise over the weekend close to the 8,100 mark following five days of falling prices.
Good resistance remains to be seen between the September low at 8,153 and the 8,183-to-8,196 late September and early October lows.
Minor support can be spotted at the 19 November low at 8,051 and more significant support around the psychological 8,000 mark.
DAX 40 regains some lost ground
The German DAX 40 has seen six straight days of losses take it to a three-week low at 19,635 before regaining some lost ground ahead of this week's curtailed holiday week.
Minor resistance is seen around Wednesday's 19,923 low and, further up, around the psychological 20,000 mark while support can be found between the October highs at 19,683-to-19,643. Below last week's low at 19,635 lies the early November high at 19,566.
S&P 500 sees strongest rally since early November
The S&P 500 saw its largest gain since early November on Friday but despite it saw two consecutive weeks of lower prices as US yields rallied on inflationary fears.
Solid US personal spending data and hopes of a Santa Rally helped US indices regain recently lost ground but a rise above Friday's highs is needed for further upside to be seen.
The S&P 500 thus needs to overcome Friday's 5,981 high, above which lies the psychological 6,000 mark and the 6,026 mid-November high, both of which may act as resistance.
Minor support below the 55-day simple moving average (SMA) at 5,922 can be seen at the 5,882 mid-October peak.
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