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

There seems no stopping markets, with fresh highs for the DAX and a resolute move higher this morning for the FTSE 100.

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
German stock exchange
Source: Bloomberg

FTSE 100 breaks short-lived downtrend

Yesterday’s recovery has continued, with the FTSE 100 reclaiming 7500, putting an end to yet another short-term downtrend. The 7550 area now comes into play, and then above this will be 7600.

Overall it looks like the buyers are back in charge, with a drop back below 7495 required to signal that more short-term losses are at hand.

DAX touches new highs again

Each pause for breath seems simply a brief period before the next move higher for DAX.

A drop below 13,250 might be a bearish signal, although, given the strength of the move, any pullbacks that hold above 12,954 remain buying opportunities. 

S&P 500 looks forward to more gains

The rally continues for S&P 500. Dips remain buying opportunities, with a push to fresh all-time highs likely.

Data suggests that, given the strong May-October period, the index will enjoy a good November and a strong December, with average gains of 5% for the final two months after a positive May-October return.

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CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.