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

European markets look robust, but the FTSE 100 has found itself unable to move higher. Meanwhile, in the US, the S&P 500 has rallied to new highs. 

FTSE 100 rally falters

The FTSE 100 was knocked back sharply yesterday, breaking a trend of higher lows seen on an intraday basis since last Wednesday.

Further declines will test support around 7490, where the index bounced last week. Below this, the 7340 level comes into play. A rally will encounter resistance around 7600, and then move on to 7700 and 7800. If 7490 holds then the index remains stuck in its current 300-point trading range.

DAX rallies to 12,400

While we saw a sell-off in the second half of the day yesterday for the DAX, the price has rebounded towards the 12,400 area.

A close above 12,450 would signal that this area of resistance has been broken, and that a push to 12,700 and trendline resistance is underway. A decline below 12,285 would suggest a return to support at 12,100.

S&P 500 maintains its upward momentum

Bullish momentum has revived but we saw a swift push back below 2870 for the S&P 500.

A failure to recover 2860 would signal a fresh move lower, while a move below 2845 would see the 2833 and 2820 levels come into view before the index moves back to key support around 2800.

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