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

NFP day dawns at the end of a difficult week for indices, but for now the buyers are holding the line.

Data board
Source: Bloomberg

FTSE 100 downtrend continues
A drop on the open is being contained for the time being, but overall the bearish trend continues for the index. As yesterday, support still may not appear in noticeable form until 6000 or 5900, although the 100-day simple moving average (SMA) at 6079 is providing some short-term relief for bulls.

The pullback has been going on for three weeks now, so the time may be approaching when a rally materialises, but we would need to see sustained action back above 6200 to confirm this, or at least a bullish crossover in stochastics. 

DAX could see a potential rally
9800 is proving to be a line in the sand for the index, so if this holds and the price bounces back above 10,000 we may have the makings of a rally.

However if 9800 is lost then we look to 9520, towards the lows of April. If this is broken then there is little support before the February lows towards 8650.

S&P 500 in the balance
2045 held overnight, as it did two days ago, so with the market oversold for the time being another bounce may be in the offing.

It will need to breach 2065 to sustain upward momentum, and then the target becomes 2073. A failure to push on today would set us up for fresh declines, on towards 2025 and then the 200-day SMA at 2010.

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