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

The indecisive trading of the past couple of days continues to dominate, with indices unable to push firmly higher.

US trader working in stock exchange
Source: Bloomberg

FTSE 100 bounce may be at an end
While we briefly saw 6200 yesterday, the index has now fallen back towards the crucial 6128 area that marked the breakout earlier in the week. It would still be unwise to suggest the bounce has run its course, but extended weakness below 6070 would suggest more losses, unwinding at least some of the move higher from mid-February.

A move back to 5966 would be one possible scenario, with further support possible around 5850. A breakout above 6200 would suggest we are still heading towards a test of the late December high at 6300. 

Buy the DAX dips
DAX bulls have been unable to muster much enthusiasm for a continued push higher this morning, so we wait to see if the selling gathers pace. The first target in any downside is 9554, and then below this 9254.

For the moment however, it seems dips are there to be bought, so we watch for stochastics and other indicators to move into oversold territory on the intraday charts. Above 9800, we look to 10,000 and then 10,230.

S&P 500 edges lower
While the index nudged higher overnight, it has begun to move lower again, with the first target being 1971, the low from yesterday and the high from 26 February. A close below here opens the way back to 1950.

Any bounce will need to take out 2000 to maintain upward momentum, but it would not be surprising to see some weakness back to the rising trendline around 1944. 

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