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

While US markets remain robust, the same cannot be said for UK and European markets.

FTSE 100 drops back below 7450

The FTSE 100 rally has faltered and dropped back below the 50-day simple moving average (SMA) at 7455. For the time being, this may still be a possible buying opportunity, but the dip will need to avoid moving back below the 200-day SMA (7404).

The loss of 7450 is a bearish sign, and may well imply that we have seen a lower high following on from November’s peak. However, pre-Christmas strength should start to kick in from today, so there is still the potential for a bounce, with a move above 7500 clearing the way to 7600.

FTSE 100 chart

DAX presses on to bottom end of range

Those who opted to go short when the DAX tested 13,200 have been proved right, as the current range continues to hold sway.

Further declines will test 12,954 and then 12,844, with a close below the latter opening the path to 12,675. 

DAX chart

S&P 500 edges lower

A small pullback sees the S&P 500 off its fresh all-time highs, but the broader trend is still intact.

A bigger fall will see 2604, and then 2597 tested, with the 50-day SMA at 2594 also potentially coming into play. 

US 500 chart

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