Levels to watch: FTSE 100 and S&P 500
Indices have rallied off their recent lows, and for the time being the buyers seem to have the upper hand.
FTSE 100 holding on above 6700
Last week was another volatile one for the FTSE 100, with steep gains and rapid losses, but the index continued to hold the 6520 low.
However, while the bulls did manage to get the index to rally into the end of the week, it has yet to push on above 6760, where it stalled last Thursday. Above this, 6840 and then 6920 come into play. Friday saw buyers emerge around 6640, so this may be an area of potential support.
S&P 500 buoyed by strong momentum
The S&P 500 rallied hard last week, and for now it has held on to the gains. So far dips over the past few days have been buying opportunities, and any pullback towards 2400 may also see fresh buying pressure develop.
A push above last week’s high around 2520 would open the way to 2550 and 2600. For now the bullish view prevails in the short term, but a move back below 2400 would likely suggest a retest of the lows around 2315.
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