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

After a strong finish to Q3, indices are girding themselves for further gains in, what is historically, the strongest quarter of the year. 

US trader
Source: Bloomberg

FTSE 100 maintains rebound from September lows

An excellent end to the quarter saw FTSE 100 cap a stellar rally from the mid-month lows. Now, with the price opening back above the 50-day simple moving average (SMA) at 7375, we look to see if momentum can be sustained. Further targets lie at 7400 and 7450.

It would likely take a drop back below 7300 to reverse the positive outlook, with a return to all-time highs by the end of the year a possibility. Any dip that holds above 7300 should likely be perceived as a buying opportunity.

FTSE 100 chart

DAX’s parabolic rally pauses

The DAX barely paused for breath during September, rallying back to all-time highs, with only the 20 June peak at 12,954 now standing between it and uncharted territory.

Given the near-vertical move over the past week, some reversal would not be surprising, but anything that holds above 12,500 remains a dip to be bought. Bears will have a tough job reversing the momentum seen here in recent weeks.

DAX chart

S&P 500 eyes new highs in Q4

S&P 500 continue to clock up new all-time highs. Any pullback towards 2500 remains a buying opportunity.

Overbought readings in momentum indicates a sign of trend strength, rather than any immediate suggestion of a top. 

S&P 500 chart

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