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

Bullish sentiment has been hit by the lack of a Deutsche settlement with the US Department of Justice, while holidays in the US and Canada and a lack of economic data mean that direction is currently hard to come by.

Data board
Source: Bloomberg

FTSE 100 looks to challenge last week’s highs

Gains last Friday stalled just below 7083, so this is the first area to watch if the index is to move on to challenge last week’s highs at 7130.

Last week, 7000 prevented the sellers from pushing the index lower, so this is the first area to watch for any support. A bigger drop could test support at 6940, while below here the rising trendline off the September low would come into play around 6900.

DAX struggles to make gains

An early attempt at a rally appears to have fizzled out for the index, so now we look to see if 10,453, the lows of 3 October and last Friday, can hold. A bigger drop could encounter support at 10,263, or else down towards 10,105. Any rally needs to push on through 10,655, which would open the way to 10,715 and then 10,800. 

S&P 500 in the balance

Gains for the index continued to be constrained by the 50-day simple moving average (2166), while dips continue to find support around 2140.

We continue to watch for a break of this range, with a push higher likely to head towards 2195, the all-time highs, and a drop encountering support at the rising 2016 trendline, around 2140. 

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