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

Indices are back in bullish form, with key levels being reached for the FTSE 100 and the S&P 500.

FTSE 100 retakes 7700

The FTSE 100 has shrugged off the weakness from earlier in the week, pushing above 7700 in early trading.

Now it needs to clear 7706-7710 to confirm a real breakout is in play, opening the path to 7800 and 7900. A reversal back below the low of Wednesday around 7560 is needed to put the sellers back in charge.

DAX recovers from recent weakness

The dip for DAX earlier in the week found support around 12,400, and has now recovered to establish a higher low from the base created at the end of June.

Tuesday’s high of around 12,650 is the next area to watch, and above this the index will be aiming for resistance around 12,954 and the downtrend line from the January high, which would likely come into play around 13,100. Dips continue to be bought, so a close below 12,400 is needed to negate the bullish outlook.

S&P 500 back at crucial level

The bulls will be awaiting today’s session with keen anticipation, as it represents another attempt by the S&P 500 to break above the 2800 area that has held back progress since February.

A close above 2803 would suggest a push to 2900 is back on the agenda. A failure would be short-term bearish, but even then we have seen dip buying throughout the week. The index has succeeded in establishing a new higher high in its still-extant uptrend from the February low.

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