FTSE 100, DAX and S&P 500 all stage small bounces

Indices have staged small rallies early on Monday, although there is much work to be done to establish that this is a higher low.

FTSE 100 bounces from trendline support

The FTSE 100 managed to hit trendline support from the December 2018 low on Friday and, for now, a small bounce is underway.

However, we have yet to see a higher low intraday, so this bounce may still be another selling opportunity, for the time being. A rebound in the coming weeks targets 7380 and then 7700, while a close below trendline support heads towards 7000.

DAX rallies off Friday low

For the time being, the DAX rally from Friday’s low and support around 12,900 could still be a selling opportunity.

A break above 13,150 would clear trendline resistance from the 24 January high, while the previous lower high at 13,270 is another target to watch. A reversal targets 12,900 and then potential support at 12,600.

S&P 500 futures stage small bounce

For the S&P 500, Friday witnessed the 50-day simple moving average (SMA) of 3219 acting as support. Aside from a drop to 3210 on Friday, the index continues to hold above 3230.

Rallies above 3290 ran out of steam last week, so we now have clear levels to watch. For the time being, daily stochastics and the moving average convergence/divergence (MACD) are still negative. Therefore, we may see further selling, with a drop below 3220 heading towards possible trendline support from December 2018, around 3140.

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