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Levels to watch: FTSE 100, DAX and S&P 500

The rally off the lows from earlier in the week has reached a crucial point. Will the bulls prevail or will the bears take charge once more?

DAX figure
Source: Bloomberg

FTSE 100 breaks through 7300 support zone

The FTSE 100 has bounced off the 7300 support zone, but now it needs to push on above 7440. A turn lower below 7400 provides another potential shorting opportunity, with an initial move down to 7300 and then potentially lower.

A close below 7294 would create a new lower low, while a failure to push on above 7400 creates a fresh lower high, a bearish development.

FTSE 100 chart

DAX struggles to move above 12,100

So far this morning a push above 12,100 has been defeated and if this marks the point where a new turn lower begins for the DAX, then we look for a move to 11,900, the key support area, and then 11,695 and 11,426 come into play.

We need to see a move above 12,200 to have a more bullish outlook here, otherwise further losses should be expected. 

DAX chart

S&P 500 stuck below 2460

The bounce from the lows of the week has carried the S&P 500 past the highs of the past two weeks. However, for now the index is stuck below 2460.

A turn lower from here would represent a new shorting opportunity, with a possible move back down to 2420. Further gains from here are likely to run into resistance around 2475 and then back to 2490, the all-time high. 

S&P 500 chart

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