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

After a week of strength for US markets and the FTSE 100, indices remain in strong form, although the DAX has yet to break out of its recent range.

FTSE 100 enjoying a strong run

The FTSE 100 remains in bullish form, adding to gains made on Friday when it pushed above the post-August downtrend line and tested the 100-day simple moving average (SMA) at 7012.

Friday’s price action suggests that the index has broken above the highs from January around 7000, and that 7127 and 7280 are now longer-term targets. The index has barely paused for breath over the past week, but any retracement towards 6950 could still be a buying opportunity.

FTSE 100 chart

FTSE 100 chart

DAX still unable to push higher

Unlike the FTSE 100, the DAX has not been able to stage a meaningful push higher. Instead, it remains contained below 11,300. But all is not lost for the bulls.

Dips to the rising trendline from the December lows have seen buyers emerge, creating higher lows. Now the bulls have to step up and clear 11,250, where a bounce on Thursday found sellers. A drop below rising trendline support brings 11,100, 11,050 and then 11,000 into play as possible support.

DAX chart

DAX chart

S&P 500 strengthens its hold on 2700

The past two sessions have been mixed ones, with the S&P 500 again consolidating following the break of trendline resistance on Thursday.

A push above 2717 targets the 200-day SMA at 2743 and from there the vital 2815 area is the next big area to watch for resistance. A close below 2670 might suggest a deeper pullback is at hand.

S&P 500 chart

S&P 500 chart


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