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

There seems no stopping markets, with fresh highs for the DAX and a resolute move higher this morning for the FTSE 100.

German stock exchange
Source: Bloomberg

FTSE 100 breaks short-lived downtrend

Yesterday’s recovery has continued, with the FTSE 100 reclaiming 7500, putting an end to yet another short-term downtrend. The 7550 area now comes into play, and then above this will be 7600.

Overall it looks like the buyers are back in charge, with a drop back below 7495 required to signal that more short-term losses are at hand.

FTSE 100 price chart

DAX touches new highs again

Each pause for breath seems simply a brief period before the next move higher for DAX.

A drop below 13,250 might be a bearish signal, although, given the strength of the move, any pullbacks that hold above 12,954 remain buying opportunities. 

DAX price chart

S&P 500 looks forward to more gains

The rally continues for S&P 500. Dips remain buying opportunities, with a push to fresh all-time highs likely.

Data suggests that, given the strong May-October period, the index will enjoy a good November and a strong December, with average gains of 5% for the final two months after a positive May-October return.

S&P 500 price chart

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