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

US markets roared ahead once more, while the DAX is also putting on a good show. 

Data trader
Source: Bloomberg

FTSE 100 falters due to sterling strength

A fresh higher high for the FTSE 100 yesterday, even one that didn’t last too long, still confirms that the buyers are in control. Renewed sterling strength on the back of possible Brexit deal news has knocked the price back towards 7400, but so long as 7371 holds, then the bullish short-term picture is intact.

A short-term rising trend from the 20 November low at 7350 is one to watch, and may suggest that support could materialise around 7390. A rally needs to clear 7473 in order to to create a new higher high.

FTSE 100 chart

DAX breaks out from descending trendline

A spike higher has broken DAX out of the descending trendline from the 21 November high, with the possibility that the way is now clear for a potential run back towards the recent record highs.

The 21 November high of 13,211 has still to be broken, but a retest of the downward trendline would still represent a potential buying opportunity.

DAX chart

S&P 500 clocks up new highs

A new record high for the S&P 500 provides yet further confirmation of bullish strength.

Previous highs at 2606, 2597, and 2588 are likely to provide support. 

S&P 500 chart

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