FTSE 100, DAX and S&P 500 all rebound from Tuesday low
Indices have continued their recovery from yesterday’s weakness, with signs of strength in the FTSE 100 and the DAX.
FTSE 100 revival continues
While the FTSE 100 rallied off the low yesterday, it is important to note that the dip on Tuesday created a new lower low, a bearish signal.
The following rebound has merely created a new lower high at 7425, and if the price rolls over today then 7350 is the first target, followed up by 7270 and rising trendline support, and then 7230 and the late-January low. A more bullish view would emerge if the price can push above 7470, clearing previous lower highs.
DAX lifts off yesterday’s low
The DAX rallied from 13,660 yesterday, but perhaps worryingly for the bulls the price looks to be creating a lower high at 13,760.
Near-term targets are13,660 and 13,600. Below this, 13,450 and then 13,210 come into play as possible support. A move back above 13,760 leaves only the record peak at 13,800 before fresh all-time highs.
S&P 500 rebounds from Tuesday low
It is a similar story for the S&P 500. The modest sell-off earlier in the week was followed up by a rebound, but now bullish momentum appears to be fading.
If this is a lower high at 3380, then a move below the 3355 support zone would mark a lower low and begin to suggest more near-term weakness, potentially heading towards 3300 and then 3240. A failure to break 3355 leaves the index in a range, with 3380 and 3392 as upside targets.
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