Levels to watch: FTSE 100, DAX and S&P 500
For once it is the FTSE 100 that is providing the bullish outlook, contrasting with weakness in the DAX and a range-bound S&P 500.
FTSE 100 notches up fresh gains
The FTSE 100 has posted higher highs and higher lows from its low at 7040 last week. Fresh gains target 7220, 7230 and then the February high of 7262.
A move above this last potential level of resistance would also put the index back above the 200-day simple moving average (SMA). From here trendline resistance from the all-time high would come into play and suggest that 7470 is the next area of resistance to watch. A drop below 7130 might suggest the move higher has run its course, and then 7040 becomes the area to watch for support.
DAX holds on to uptrend
Yesterday saw the DAX unable to move above 11,640, but the overall upward move from the February low at 10,870 remains intact.
A close below 11,530 would be viewed as potentially bearish, bringing 11,420 into play. A recovery above 11,640 brings the 11,684 highs from Monday into play.
S&P 500 floundering after Monday’s fall
A fresh close above 2800 continues to elude the S&P 500, but the low from Monday’s sudden drop has yet to be tested.
Below 2766, the price could find support around 2735. Further gains would target 2800 and then 2820.
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