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

Indecisiveness reigns across indices this morning, with yesterday’s bounce giving way to some modest selling. 

US traders
Source: Bloomberg

FTSE 100 eyes 6650

The index is managing to claw its way higher, but it is making very heavy going of it. Since 11 November we have had a modest series of higher highs and higher lows on the hourly chart, but this could easily be negated if we see a close below 6750.

To maintain the rally the price needs to clear yesterday’s highs around 6850. A move above here would head towards 6894 - the 50-day simple moving average (SMA) - and then on towards 7000. Below 6750 the index targets 6715 and then 6650.

DAX could drop to 200-day SMA

The 10,800 level is still acting as resistance, providing a stone wall that has stalled any breakout since late July. For now the index is clinging on to its rising trendline from the 24 June lows.

However, if this is broken the index could risk a drop to 10,550, and potentially lower, even to the 200-day SMA at 10,136. A breakout above 10,800 still targets 11,000. 

S&P 500 could head towards all-time highs

The index has been bumping along below the 2016 trendline, but has been unable to find the strength to break higher. With daily momentum indicators either overbought or heading that way, buyers may find it hard to keep the rally going.

A break lower would head towards 2140, and then 2108. A rally would had towards the all-time highs at 2195. 

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