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

Markets stabilised on Friday, with sharp pushes higher so far this morning, potentially indicating that the September weakness is over.

US traders
Source: Bloomberg

FTSE 100 pushes higher

Friday’s price action saw the price stabilise above 6700, with a push higher so far this morning taking the price above the 11 September peak of 6770.

A close above here adds further to the idea that the September dip is over, with the 6820 area the first resistance level to watch for. Above this, the 6880/6900 zone comes into view.

A steady rising trend off the 15 September low remains in place, with Friday’s low around 6695 providing the first test. A move back towards the trendline may therefore bring out fresh buyers. 

FTSE 100 chart

DAX struggles to make gains

Although Friday saw a dip to 10,250, the price has clambered back above 10,300, which was a key support level over the past week. So far this morning, the index is showing reluctance to move higher in line with its peers, but the sharp mid-September fall does appear to be at an end.

A continued push higher would target resistance at 10,450 and then 10,550, and then we would look to 10,800 and the peaks from August and September.

A move back through 10,300 would muddy the water, but it would need a push below 10,250 to suggest the sellers are back in control.

DAX chart

S&P 500 tests resistance level

The index found support at the 100-day simple moving average (SMA), currently 2124, throughout the past week, and is now testing Thursday’s resistance level at 2150.

Above here, the 12 September high of 2160 is a key one to watch, since it was so firmly held. A move through here would then suggest a return to 2190. The next areas to watch on the downside are 2130 and then, as well as the aforementioned 100-day SMA. 

S&P 500 chart

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