Levels to watch: FTSE 100, DAX and S&P 500
Indices suffered a reverse yesterday, but there are signs of a recovery.
FTSE 100 drops back from key resistance
The FTSE 100 fell back from its recent highs, faltering around the 7200 zone that marked resistance back in October and November.
Further declines would likely find support around 7000, where the index peaked in mid-January before breaking higher this week. A rebound to 7200 then needs to close above this level to create a higher high.
DAX returns to key support
The DAX has fallen back to support around 11,000, dropping below rising trendline support from the December low.
However, if this area holds, then a rebound towards 11,250 is possible. A close back below the 50-day simple moving average (SMA) of 10,933 would boost the prospect that a deeper retracement is at hand.
S&P 500 tries to recover from losses
The rally suffered a check yesterday as the S&P 500 dropped back towards 2685.
So far, this area has continued to hold, and a rebound would target 2740. Further declines bring the 2620 support zone into play.
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