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

New record highs in the S&P 500, plus a break above key resistance for the DAX, have meant that December so far has been very good for investors. 

US traders
Source: Bloomberg

FTSE 100 could see all-time highs

While bulls can feel satisfied that they have finally managed to get the price back above the 50-day simple moving average (SMA) - 6894 - the price has run right into resistance seen on 9 November, around 6940.

A failure to push on here may lead to some short-term weakness, perhaps back down to 6880 or 6840. A daily close above 6940 suggests a move to 7006 and then on to the all-time highs of 7134. 

DAX bulls have upper hand

The breakout above 10,800 finally took place yesterday, and, in a sign of the strong bullish momentum, it carried on right to 11,000. The next target is 11,400 for the DAX, an area last seen at the beginning of December 2015.

A drop back could see support at 10,800, but as long as the price stays above here the bulls look to have the upper hand. 

S&P 500 could see further gains

Fresh record highs on the index yesterday came on options expiry day, so we may see some short-term weakness towards 2215.

The firm break higher does suggest more gains over the longer-term, so long as the index holds above 2200.

On the longer-term chart, the price has finally broken above the longer term rising resistance line that has dominated since early March. 

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