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

The new week has begun on a bullish footing for indices.

FTSE 100 looks to clear 7300

Last week saw the FTSE 100 price fall back from the 7300 area, but a recovery began on Thursday. With a stronger open in the US expected, we look to see if the index can make another attempt to clear 7300.

Overall, the push higher is intact, with higher lows so far being seen (the last being Thursday’s at 7186). Above 7300, the 7400 area is the next one to watch. The possible areas of support remain at 7144, and then 7000 and 6919.

DAX could return to all-time highs

The buyers remain in charge here too, and this morning the DAX is testing the 12,551 area that marked the limit of its ambitions a week ago. A close above this level opens the path to 12,663 and then 12,742.

This last level is the most important to watch, as a close above it would suggest that a return to all-time highs could be in the offing. A drop back below 12,551 opens the way to further declines, but so far the dips have been bought, as we saw on Thursday when the price briefly lost 12,300.

S&P 500 maintains its pace

The recovery remains in place, as the S&P 500 looks to push on firmly beyond 2750. Above this, 2764 is the next level to watch, and then from here 2877 comes into play.

It would take a move back below 2682 to reverse the near-term bullish outlook, and a drop below 2628 to really damage the expectation of higher prices over the coming weeks.

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