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

European markets have rallied off their lows from earlier this week, but the S&P 500 remains stuck in a narrow range just below 2300.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2017-02-09T09:36:27+0000

FTSE 100 chart

Source: Bloomberg

FTSE 100 saved by fresh buying

Signs of potential deterioration in the index yesterday were swiftly followed by fresh buying. Now the first target on the upside is 7220, where Tuesday’s gains stalled, with 7276 and then 7350 the next levels to watch.

If gains falter today, 7150, and 7100 are the areas to look for support. A close below 7100 could signal that a new move lower has begun.

FTSE 100 chart

FTSE 100 chart

FTSE 100 chart

DAX fighting off the lows

European indices have clambered off the lows of the week, with the index holding above the 11,400 area once more. However, it needs to push firmly above 11,700 to indicate a bottom is in place.

Above 11,700 the next target is 11,900, while below 11,400 we could see a push back to 11,272 or even to 11,030, the 100-day simple moving average (SMA).

DAX chart

DAX chart

DAX chart

S&P 500 with the potential for all-time high

Rallies towards 2300 this week have been beaten back, while, so far the 2288 area continues to provide support.

A break above the former would suggest a push to 2304 and the all-time high, and then higher. If 2288 is lost, 2267 is the next area to watch for short-term support.

S&P 500 chart

S&P 500 chart

S&P 500 chart

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