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

The US elections are out of the way, and buyers are returning to equities after hesitation earlier in the week.

FTSE 100 continues its bounce

The price of the FTSE 100 is rebounding from the lows of Tuesday’s session, having found support around 7025.

However, we have seen lower highs since Friday, with 7127 and then 7187 as possible resistance in the event of any turn higher. A failure to maintain upward momentum could see a deeper retracement. Above 7187 the price will move on towards 7220 and then 7280.

DAX finds new strength

A bounce for the DAX from around 11,430 on Tuesday has so far fizzled out around 11,600, creating a lower high.

A fresh push higher targets 11,700, where Friday’s rally ran out of steam. Possible support lies around 11,430, with a close below this level opening the way to 11,000 and the lows of October.

S&P 500 regains ground after midterm results

The S&P 500 continues its climb higher, pushing above the 200-day simple moving average (SMA) of 2761.

Friday’s high at 2766 is also being broken, which bodes well for further upside, with 2800 as potential resistance. Higher lows have been seen over the past week, so dips towards 2720 may find buyers, while a move below 2700 would be needed to suggest a real reversal is at hand.

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