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

Indices are generally quiet after the excitement earlier in the week, but so far, the mood is one of consolidation rather than bearishness. 

Trader looking at data
Source: Bloomberg

FTSE 100 holding on

The FTSE flirted with 7400 yesterday but held above it, and this morning is only fractionally lower.

Below 7400 it would target 7380 and then 7358, the 200-hour simple moving average (SMA), while in case of a bigger pullback, the index would head towards the 50-day SMA at 7269. Only a close below 7174 would really indicate that the rally has run its course.

DAX finds substantial support

The two-year high in the DAX yesterday was knocked back, but we may see the price find support off the rising trendline that has prevailed since the beginning of February.

Even if this is lost then the 11,920 area could provide further support. In the longer-term, it needs a move below 11,700 to really indicate a downward move is in progress.

S&P 500 looking at all-time highs

S&P 500 failed to push to new highs this week, but with the 2355 area providing plenty of support, it is unwise to suggest the rally is finished.

In reality, we should be expecting a bigger unwind, either to 2370 or 2355, to provide a good buying opportunity. Rallies need to take out 2380 and then 2400 to push to all-time highs. 

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