FTSE 100 mixed but DAX and S&P 500 stabilising
Indices have recovered after some losses at the beginning of the week, with trade headlines leading to further gains.
FTSE 100 struggling thanks to stronger pound
Sterling strength and a stubborn risk-off atmosphere continues to do little for the FTSE 100, which has dropped below 7200 support and is fighting to hold above Tuesday’s low around 7133.
Below this, 7100 and 7000 are the next levels to watch; since last Thursday intraday rallies have not lasted, with sellers streaming in. The overnight bounce towards 7200 was no exception, and until this changes the bears remain in control.
DAX holds support
The DAX managed to hold 12,954 yesterday, and moved higher overnight, but the bounce has run out of steam for now at 13,070, and so far the price is unable to move back above the 50-hour simple moving average (SMA), at 13,056.
If it can move above both of these then a higher low may be in place, and a push back towards 13,300 will be underway. Alternately, a close back below 12,940 would open the way to deeper losses, heading towards 12,600.
S&P 500 starts to recover
The hourly S&P 500 chart continues to point to lower highs, with the overnight bounce to 3097 then seeing some early losses.
However, if the price can move above 3097 and reclaim the 50-hour SMA at 3110 then a fresh move higher may begin. This would target 3140 and then 3155. Alternately, further losses will push back towards Tuesday’s low at 3070, and then bring 3026 into view as possible support.
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