DAX searching for new all-time highs
Attempts to break above 12,080 were slapped down on the DAX, but as with the FTSE 100, the index did create a new high, even if it couldn’t hold on to it. An area of potential support could be 11,927, as it was all the way through the early part of March.
A drop through 11,720 would really suggest the rally is imperiled. The next areas to watch on the upside are 12,200 and then 12,435, with a move above the latter putting the index in new all-time high territory.
S&P 500 with an interesting buying opportunity
Unlike the above two indices, the S&P 500 failed to create a new high last week, but it did find a lot of support in the 2355-2370 zone. Bears would need to break this to signal broader weakness ahead, with further potential support around 2300 and then 2264.
Longer term, it is hard to escape the feeling the index has got ahead of itself, with the 2016 uptrend line far below the current price. A correction of around 8% would take us back to that rising trend. While it would wipe out most of the gains made since December it would provide one of the most interesting buying opportunities.