DAX retakes key level in push higher
The DAX has retaken the 12,749 level noted yesterday as an important definer of near-term price action. From here, the 12,954 and then 13,200 levels come into play.
Having established a new higher low, following on from the sub-12,400 reading at the end of April, some tentative buying may develop. A push above 12,860 breaks the short-term downtrend from the recent high.
S&P 500 back above 2700
The brief trip below 2700 has come to an end, and now the S&P 500 must push on through 2740, an area that has held back upward progress throughout the month.
From there, the area around 2800, the highs from mid-March, come into view. US markets have been much more sanguine about the Italian crisis, so may well lead the way higher in coming days. A break below 2680 negates this more optimistic view, and would bring 2640 and 2600 into play.