FTSE 100 and DAX falter, while S&P 500 holds above 3000
European markets remain under pressure, while US markets await news from the Fed meeting today.
FTSE 100 works off recent gains
The FTSE 100’s bounce following the official close yesterday has been entirely unwound, as investors look to the Federal Reserve (Fed) later today.
Such a dramatic rally needs time to be worked off, but with 7600 having marked notable resistance earlier in the month a dip towards this level would not be surprising and still provide a buying opportunity. Below 7600, the 7475 area comes into play as possible support, while a recovery above 7670 helps to revive the bullish short-term view.
DAX looks to hold trendline
Yesterday’s slump resulted in the DAX hitting rising trendline support from the December lows.
If this holds, a rebound may develop, however, a move above the 50-day simple moving average (SMA) at 12,244 would be a necessary first step. Further declines head towards 12,000, 11,815, and then 11,600, the low from the end of May.
S&P 500 pushes on above 3000
US markets have been struggling to maintain the bounce from the end of last week, but the S&P 500 has managed to hold above 3000.
Further gains head towards 3030 and the peak from last week. Meanwhile, a break below 3000 would begin to develop a more short-term bearish view. The index will likely remain quiet ahead of the Fed meeting.
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