FTSE 100 and DAX mixed while S&P 500 looks for more gains
Indices ended the week strongly on Friday, but some early weakness in European indices has been seen this morning.
FTSE 100 struggles below key level
A close above 5900 continues to elude the FTSE 100, although rising support continues to prevent any further downside either.
Last week’s higher low supports the bullish view, with a move above 5900 targeting 6240 and 6380. Alternatively, we look for a reversal below 5500 to provide a more favourable outlook for shorts, potentially bringing the March lows at 4800 back into play once more.
DAX stuck below 11,700
For the DAX, gains have stalled around 10,700, but as we saw last week dips continue to find buyers.
A push through 10,700 and then through the 50-day simple moving average (SMA), currently 11,063, would mark a bullish development, as would a closure of the gap from early March. If the index reverses and moves below 10,200, bears may detect the potential for more weakness, with the price breaking below the series of higher lows in place from the middle of March.
S&P 500 retakes key levels
In a fresh positive development, the S&P 500 was able to push through the 50-day SMA at the end of last week, reaching 2900 as well.
If it can push through any weakness to hold above 2900 then it will also have closed the gap from early March, adding to the bullish view. Further gains head towards 3130, while a more bearish view would require a reversal back below 2700.
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