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

Buyers are back in charge, with key resistance broken on a number of indices. 

US trader
Source: Bloomberg

FTSE 100 eyes 6309

The strong move yesterday puts the initiative back into the hands of the bulls. The close above the high of late January (6126) essentially ignites a new uptrend, so 'buy the dips' remains in effect for the time being.

The next upside targets are 6309 and then 6447, the latter being the December high and resistance throughout last October.

Dips back towards 6120 today should see fresh momentum, and it still needs a move back below 6000 to cancel the bullish outlook for the FTSE.

DAX could see more buyers

Faced with one falling and one rising trendline, the DAX opted to break the former, heading back towards the 9850 area that stymied progress at the end of January.

A break above here would then head on to 10,100 and then 10,232, the 100-day simple moving average.

Dips back towards the rising trendline around 9450 may bring out more buyers. 

S&P 500 could see 200-day SMA

A stellar day for bulls yesterday suggests that the next target to watch is 2000, and then the 200-day SMA at 2020.

The double-bottom of January and February seems to suggest that the default direction is still higher, so while we may get pullbacks, these are still buying opportunities.

The index would have to move back below 1950 to indicate that a turn lower has begun. 

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