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

European markets lead the way, with the DAX in particular pushing sharply higher. However, things are slowing in the US, where the S&P 500 remains in a period of consolidation.

Data
Source: Bloomberg

FTSE consolidation continues
The FTSE 100 touched and rejected Friday’s high of 6932 this morning, with the index remaining within a period of sideways consolidation. There is a clear uptrend in play here and as such, the expectation is for a bullish breakout.

The index is currently attempting to make that move now. A breakout would be signaled by an hourly close above 6932. Should that occur today, we would be looking towards 6950 as the next key resistance level of note. 

FTSE 100 daily chart

DAX breaking higher following consolidation
The DAX is pushing higher from a period of consolidation overnight, with the index continuing its August ascent. This trend is expected to continue and as such, the creation of higher highs and higher lows are key to this. With that in mind, a bullish outlook remains in play unless we see an hourly close below 10,684.  

DAX daily chart

S&P 500 rallying into trendline resistance
The S&P 500 is also gaining ground, yet still remains within a period of consolidation given the existence of a very shallow trendline up ahead (around 2190). With that in mind, we have a clearly defined hurdle to overcome if the index is going to break into a new leg higher. Until that happens, it is worth looking for this consolidation to continue, with a potential weakening from the 2190 area.

S&P 500 chart

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