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

Indices edged back from the Friday highs, but the overall move higher is still intact.

Trader Source: Bloomberg

FTSE 100 below 50-day SMA, but uptrend still in place

Having fallen back below the 50-day simple moving average (SMA) of 6899, the FTSE 100 may be at risk of topping out, but early weakness in the futures is being countered with some buying pressure.

If the index can hold the 6880 area then another attempt to push above 6900 may result, and then challenge the high from last week around 7000. The uptrend from the December lows is intact, and we would need to see a drop below 6800 to begin to suggest a top is definitely in for now and that the sellers are in control.

FTSE 100 chart

FTSE 100 chart

DAX aims for a bounce

Key support for the DAX has been 10,800 over the past few sessions, and for now it continues to hold.

Continued gains target last week’s high above 10,950, and then on to the 50-day SMA at 11,024. A drop back below 10,800 would suggest a move back to rising trendline support from the December lows, around 10,650.

DAX chart

DAX chart

S&P 500 revisits key zone

The S&P 500 is heading back to the area around 2610 that marked the lows in October and November, so it is not surprising to see some hesitancy around these levels.

The upward move is still intact, and the pullback from the Friday high has already seen some buying momentum develop. A clearance of the area around 2610 (the blue rectangle) and the 50-day SMA (2629) would spark further upside. A close below 2560 would be near-term bearish, but a really bearish development would require a drop below 2530.

S&P 500 chart

S&P 500 chart


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