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

A remarkable recovery in risk assets has been seen, as new polls put the ‘Remain’ campaign back ahead in the UK referendum debate.

Data charts reflected in a trader's glasses
Source: Bloomberg

FTSE 100 rallies on back of Brexit polls
Friday’s rally has taken on a new lease of life, with the FTSE 100 firmly back above 6100. It is possible that we will see some consolidation now, or even a filling of the gap, but with the caveat volatility will be seen in abundance this week, it looks like the buyers are back in charge.

Those with strong hearts and an ability to see past the volatility might think we may now enjoy a move back towards 6300 in the short-term, which would bring the price back to the descending trendline off the May highs.

A drop back towards the bottom end of the gap around 6060 would not be unsurprising, but sellers will want a move below 6000 to really suggest further downside is likely.

FTSE 100 price chart

DAX losses seemingly nothing but a memory
A similar move is seen here, with the losses of last week swiftly forgotten. The way is now clear back to the 200-day simple moving average at 10,090, and then above this we look to the 10,400/10,500 area, where gains stalled in April.

It would take a move back below 9700 to reverse the current bullish outlook, with the index needing to move below 9500 to really ignite fresh downside. 

DAX price chart

S&P 500 headed up
The index is back above 2090, which puts some clear water between the current price and the highs of last week. The next target is around 2100, and then above this the 2120 area from the beginning of June.

A reversal back below 2070 would dent the outlook, with a first target of 2050, and then below this to 2037. 

S&P 500 price chart

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