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

It has been an unsteady open so far, with the FTSE 100 struggling to hold its ground. 

US trader
Source: Bloomberg

FTSE eyes 7120

Friday’s rally ran out of steam at 7050, with further weakness developing so far this morning. The index is presently flirting with the rising trendline off the September lows, and if it moves through here then we are looking at a test of Thursday’s lows at 6924.

Below this we would look to the 50-day simple moving average (SMA) at 6876 as potential support, similar to the price action at the end of September. A move higher needs to take out 7050 and then push on to 7120.

DAX could head to 100-day SMA

A falling euro is helping to flatter European indices this morning, with no sign so far that a bigger sell-off is developing. The index finds itself hovering around the 50-day SMA (10,555), so this is a key area to watch for the time being.  

A decline would head towards 10,450 and then 10,350, while below this we would look towards the 100-day SMA at 10,260. A rally would head towards the resistance zone around 10,650-10,700. 

S&P 500 could see September low

The index fell back from 2150 late on Friday, so we have the first area to watch on the upside. Meanwhile, a drop today could bring 2115 into sight.

Below 2115 comes the September low of 2108. Meanwhile a bounce above 2150 would head towards 2170, where the index faltered earlier in the month. 

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