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

November finished on a disappointing note for indices, and December has got off to a weak start. 

Source: Bloomberg

FTSE 100 could test 6612

Despite a strong performance from heavyweight oil stocks yesterday, the FTSE 100 finished well off its highs, and indeed surrendered almost all the gains from the early part of the session.

Having fallen below the rising hourly trendline we could see price test the Tuesday lows toward 6730. A bigger move lower could see the price test the 6612 support area. 

DAX eyes 10,800

The price is battling to hold above the 50-day simple moving average (SMA) - 10,593 - with an early dip to the lows of Tuesday around 10,540 bringing out buyers so far today.

However, we have been on a steady move lower since the 10,800 level was hit on 16 November, so a rally today may bring out fresh sellers.

A move through 10,540 targets 10,300 in the first instance. A bounce needs to clear 10,750 and then manage a daily close above 10,800 for the DAX.

S&P 500 could move lower

After days of strength the price finally looks set to move lower, in the wake of a close yesterday that saw weak breadth for the index (number of rising stocks minus number of declining stocks).

The 2186 and then 2170 levels are the areas to watch now, while a rally would have to close back above 2220 to indicate that this was only a bear trap. 

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