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

Indices continue to find support, and we are beginning to see meaningful upward momentum developing.

FTSE 100 shrugs off political turmoil

Steady gains are still in evidence, as the FTSE 100 clocks up a new higher high overnight in its move off the lows of last week.

A recovery back above 6840 would be a positive development, and then put 6920 and 7120 into the frame as upside targets. The bullish view persists until the index drops back below 6740.

DAX higher, but more work to be done

The losses for the DAX have stopped for now, but it is not yet clear that a sustained move higher is underway.

A close back above 10,823 would deliver a more bullish message, while a recovery above 11,000 would be a further sign that the buyers are back in charge. A move back below 10,650 would likely invalidate the bullish outlook.

S&P 500 recovers after choppy Tuesday

The gains continue here, as the S&P 500 recovers from yesterday’s sell-off.

Having held 2600 earlier in the week, the index continues to move higher, although it remains within the 2620-2820 range. A meaningful break higher requires a close above 2820. Further hurdles along the way include 2700 and the 50-day simple moving average (SMA) at 2730.

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