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

US markets are back with a vengeance after Thanksgiving, and early trading suggests late year seasonality is finally starting to take effect, with healthy gains for European markets in the first hours of trading.

FTSE 100 leaps out of the gate

The FTSE 100 has pushed sharply higher in early trading, having rallied around 100 points from the lows of Friday.

Further gains target 7025 and then 7060, and then on to the area around 7150 that acted as resistance in the first half of November. A breakout above here targets trendline resistance around 7265.

DAX surges after choppy week

It looks like the DAX has established another bottom above 11,000, consolidating around this area over the past few days and in a similar fashion to the late October price action.

Now we wait to see if the gains can be held, and a push to the 11,700 area of resistance may result. Above this the mid-October peak of 11,560 comes into view. Dips back towards 11,000 would imply another test of this area of support.

S&P 500 starts off the week with a bounce

Now that Thanksgiving is out of the way markets can return to normal trading, and so far US futures are in a positive frame of mind.

If the retest of the October lows of the S&P 500 is now complete then further gains will result, targeting 2700 and then on to 2820. A pullback towards 2630 might provide a buying opportunity, and it would require a firm close below 2600 to suggest that the October lows have been definitively breached.

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