Levels to watch: FTSE 100, DAX and S&P 500

Indices have begun the week on the front foot, after a rebound on Friday.

FTSE 100 sets its sights on May trendline

The rebound goes on here, with the FTSE 100 now looking to challenge trendline resistance from the May highs.

This would involve a decisive move above the 7700 level, and then to clear 7710, the high from the end of June. From here, 7800 and then 7900 come into play. A bearish move requires a break below the trendline from the March lows, i.e. a drop below 7575, which would then bring 7500 support into view.

DAX reaches two-week high

The buyers are in charge here as well, with the DAX touching two-week highs this morning.

Steep trendline support has held over the past week, which may suggest that dips to 12,430 would find buyers, followed by the 22 June high at 12,606, then on to 12,770 and 12,954.

S&P 500 aims to build on strong Friday

A mixed week for S&P 500 last week saw the buyers emerge in charge, and now they must find the strength to challenge the vital area around 2800, which stymied rallies back in March and then in June.

Above this, the 2877 high from January comes into play. Last week saw the index hold support around 2700, so this is the key area for the bulls to hold.

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