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

The new week has got off to a storming start, with markets surging off their early lows.

US trader in a stock exchange
Source: Bloomberg

FTSE 100 pushes higher regardless of Italian referendum

The index has opened higher despite the result from Italy, moving off the lows of last week around 6680. It has continued to push higher towards 6800, although for now it seems as if the 200-hour simple moving average (SMA) – 6787 – is preventing further gains.

It would take a firm breach of 6800 to indicate the weakness of the past week has run its course. Bears now have to get the price back below 6740, and then break 6680 to confirm a new move lower is in play. 

FTSE 100 price chart

DAX trading within a range

Within the first few hours of trading, the DAX has seen a 3% range. Bulls need to get the price back above 10,700, and then this may permit another attempt to break 10,800. If the gains of the opening part of the session are eroded, then sellers will look to get the price back below 10,550, and then target 10,400. 

DAX price chart

S&P 500 rallies

US markets have rallied off their lows following the vote in Italy, and now the S&P 500 needs to break the 2210-2220 area that stopped progress last week. A failure to push on from here raises the prospect of another test of 2185, and potentially down towards 2163.

S&P 500 price chart

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