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Levels to watch: FTSE 100, DAX and S&P 500

While the DAX is still trying to find the strength to break higher, the S&P 500 has broken through trendline resistance, with the FTSE 100 following on behind.

FTSE 100 returns to August trendline resistance

The FTSE 100 has pushed back to descending trendline resistance from the August highs.

This also brings it back to the 7000 area that held back progress earlier this month. A break above 7000 then opens the way to 7130, 7180 and 7280. The area that stifled upward progress in November is 7180, so a move above here is a bullish long-term development.

DAX struggles below 11,300

Attempts to break above 11,300 continue to run into resistance for the DAX, but yesterday’s dip towards rising trendline support from the December low found buyers.

The index continues essentially to consolidate after the big 18 January push higher. A close above 11,300 and the 100-day simple moving average (SMA) at 11,345 would mark a bullish move, though a firmly bullish view requires a move above 11,700 and the November highs.

S&P 500 breaks downtrend resistance

All eyes were on the downtrend line from the October highs, which the S&P 500 breached yesterday, and it has followed this up this morning with a push above the 100-day SMA at 2703.

However, this is only a half victory for the bulls until the index breaches the October and November highs above 2810. But having broken out of the consolidation phase of the past two weeks, the index looks well placed to push higher.

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