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

The FTSE 100 is providing rich pickings for bears, while the rally in eurozone and US markets remains in pause mode. 

Wall Street
Source: Bloomberg

FTSE 100 under heavy pressure

Sterling’s rocket-fuelled rise has put severe pressure on the FTSE 100 index, with the drop from 7450 coming as the US and eurozone indices move higher once more. With the 7300 zone broken, and so far no ability to move back above it, the bears may have their chance.

Some support could be provided at 7260, but otherwise we could be looking at further losses, down to 7185 and then 7090. A reversal back above 7300 is needed to put a positive outlook on things.

DAX still consolidating steadily

DAX continues to hold above the 100-day simple moving average (SMA) at 12,466, with no sign of bearish momentum developing. So far the index is still consolidating, but a move above 12,570 would then open the way to 12,700 and 12,880.

Any retracement that holds above 12,300 and perhaps even above 12,200, is still a buying opportunity.

S&P 500 dip quickly passes

An overnight dip for S&P 500, thanks to North Korea, has faded away rapidly, and we now look to see if the index can take out 2500 soon.

There have been few pullbacks, but any that hold above 2470 remain buying opportunities. 

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