Levels to watch: FTSE 100, DAX and S&P 500
Indices recovered to an extent at the end of last week, and some bullish follow through has been seen so far this morning.
FTSE 100 targets 7200
The FTSE 100 rebounded on Friday, rallying off trendline support from the 28 February lows.
Now it must break trendline resistance from the 15 February high, which would require a push back above 7200. From there 7262 comes into play as resistance, and then downtrend resistance from the all-time high, indicating a move through 7500. A renewed bearish view would develop with a drop below 7070.
DAX bounces from vital support
Friday witnessed a bounce from 11,400 for the DAX, a key zone of support from late February. If this continues to hold then 11,600, 11,650 and then 11,680 are the recent peaks to watch for resistance.
A recovery back above 11,550 would likely signal that the buyers are back in charge. A close below 11,400 is needed to suggest that more downside is ahead and would then bring 10,945 into view as possible support.
S&P 500 mixed after recovery
If Friday’s rebound fails to make further progress, then a fresh lower high will have been created for the S&P 500.
Additional gains target 2775 and the previous intraday lower high. From there 2815 is the area to watch, the high from the end of February and then the all-time highs at 2940 are back in sight. A turn lower from below 2760 would head to 2720 support and then to 2683.
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