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

Early strength sees the S&P 500 rally into an all-time high, while the DAX and FTSE rallies both come into question for contrasting reasons.

Data board
Source: Bloomberg

FTSE rallies from key support

The FTSE bounced up from the 6690 support level on Friday, confounding any calls for a break lower. Crucially, a break below that level would have created an intraday lower low and as such we have instead remained within an uptrend. However, overnight strength is coming under pressure at the open.

Ultimately, the ability to post a new high above 6780 will be key to remaining within this gradual uptrend. Given the flat lining lows, we have seen a warning sign of a potential weakening and as such, the bullish view is only confirmed once more with a break above 6780.

Thus while the uptrend remains intact, the conviction is weaker for now. 

FTSE 100 price chart

DAX rallies into major resistance level

The DAX has moved sharply higher this morning, with the index rallying into the massive 10,481 referendum day high. The ability to break through this level will dictate the state of play for the day, where an inability to push through could cause a sharp pullback.

Or else, an hourly candle above 10,481 would point towards another leg higher for the DAX. 

DAX price chart

S&P 500 finally breaks from range

The S&P 500 has broken through the notable 2178 resistance level overnight, posting a new all-time high. This crucially raises the chance of another strong move higher and as such, while price remains above 2178, we could see further gains come into play.

Also watch out for trendline support (currently 2171) should we see a deeper pullback.

S&P 500 price chart

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