FTSE 100, DAX and S&P 500 aiming to move on from difficult Monday
Indices are edging higher this morning, after a tough start to the week.
FTSE 100 attempts to clear 50-day moving average
The FTSE 100 has begun to show signs of life, moving higher over the past two sessions this week.
However, it now needs to push on above the 50-day simple moving average (SMA) at 7226 to target the 7400 peak from late September. Having held the 7100 area over the past three weeks, it would take a move back below this to reverse the more bullish impression, and even here the dips to 7000 in August and early October were swiftly bought (particularly so in October), suggesting that this area may continue to be defended.
DAX aims to recover Monday losses
Weakness yesterday has been replaced with fresh buying, as the DAX looks to create a new higher low around 12,650.
Fresh moves higher will target 12,800 and on from here. Having rallied so strongly since the beginning of the month the index may pause soon to consolidate gains, but the overall outlook for the rest of the year is still strong. A move back below 12,400 would be needed to seriously damage the bullish outlook from here.
S&P 500 looks to challenge 3000 again
Here too the weakness of Monday has stabilised for now for the S&P 500, with the prices finding support above 2980.
Fresh gains head towards 3014, while possible support in a retracement could be found at 2959 and then 2940. Above 3014 the index has breached trendline resistance from the July high, opening the way to the record high from July.
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