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

The week has started with some modest losses, although the longer-term trends remain firmly intact. 

US trader at work
Source: Bloomberg

FTSE 100 may be due some losses
Friday saw the index retreat from 6200 once again, although it is still really just in the middle of its current 120 point range (6100 – 6220). The continued failure to breach this level suggests that some weakness is due, in which case we look to 6000 and then 5900, after which we can assess whether we are in for more losses into the end of March.

Any break higher requires a daily close above 6220, and this would also put it above the rising trendline off the February lows.

DAX continues to move lower
The move lower from 10,000 continues, although the daily uptrend still holds, which means we may only see the retracement move as far as 9700 or so before rallying once more.

If the index can hold the trendline then we look for a move back to 10,000, which would then clear the way to 10,121 and the low of December.

Shorts are unlikely to get any long-term traction until we see a break below 9600.

S&P 500 remains in an uptrend
Despite the lower start today, the uptrend is still in place off the February lows. We could see the index move back to 2020 in the short term, which would leave the move higher intact. Even a drop back to 2000 would count more as consolidation rather than the start of a bearish move.

However, the index needs to hold above 2000 on the monthly chart to avoid the impression that a rounding top is still underway.

On the daily chart, a move back to 2050 would require a close above this level to confirm more gains are on the way, and this would then open the way to 2082 and 2106. 

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