Bullishness fades across FTSE 100, DAX and S&P 500

Despite yesterday’s bounce indices are finding it hard to make further progress, with the FTSE 100, DAX and S&P 500 all stalled below last week’s resistance.

FTSE 100

Unlike US markets, the FTSE 100 only enjoyed a modest rally, and once again gains stalled below 7300, providing a firm line for longs and shorts to watch.

A continued failure to move above this level maintains a bearish view, targeting 7164 and then 7060, the low from last week. A close below this would be very bearish, since it would mark a drop back below a level that has held since February. Downside targets would then be 6734 and 6534. A move above 7300 rescues the bullish thesis, and would open the way to 7500 and higher.

DAX

The picture here is very similar to the FTSE 100, as the DAX fails to move through 11,800, maintaining the zone of resistance established last week. Further declines head to 11,540 and 11,340.

The low from last week mirrors the bounce from this zone in late March, and a move through here firmly establishes the bearish view. Bulls need a move above 11,800 to begin to revive the positive outlook for the index.

S&P 500

US equities reacted positively to the news of tariff postponement, but since surging the S&P 500 has held below 2940, and like Europe this is the level from last week that needs to be broken to provide more upside.

Buyers need to step in now to push the index through this level, or the bearish view may reassert itself. Some pre-market weakness is possible, and a retracement of some of yesterday’s gains that then creates a higher low would be a good sign, but a full drop back to, and then below, 2869 would reassert the bearish view in dramatic style.


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