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

Will this week see a Santa rally, or have indices already peaked for the year?

Trader reflected in data boards
Source: Bloomberg

FTSE 100 aims to break 7000 once more

The index has fallen back below 7000 in early trade, so a push back above here is needed to restore near-term bullishness. The first area above 7000 to watch is 7033, since Friday’s bounce stalled at this level. Above here the index would target 7064 and then 7090.

A further move lower would find near-term support at 6950 and then 6920. A fall through 6860 would perhaps indicate a bigger drop is likely. 

DAX hits December 2015 resistance

The index has run into heavy resistance around the 11,400 level, the peak from last December. A turn lower from here would head towards 11,300 and then 11,252.

A break below this latter level could indicate more losses are on the way, perhaps as far as 11,022, the second weekly pivot support, or even 10,902. 

S&P 500 uptrend remains despite losing ground

US markets lost ground towards the end of last week, but the uptrend here remains in place. First support is possible around 2253, followed by 2247 and 2239.

A move below 2239 could indicate a drop towards 2177 and the 50-day simple moving average. The areas to watch on the upside are 2274 and then 2281. 

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