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

Indices have started the week on the back foot, with some small moves lower, continuing the theme from the end of last week.

Data screens reflected in a trader's glasses
Source: Bloomberg

FTSE 100 drift continues

A gap lower in the FTSE 100 overnight was met by fresh buying, but overall the drift back from 7400 goes on. We may see buyers stage a real defence at 7320, the high from mid-February. We would then look towards 7400 as the next target on the upside.

If 7320 is broken then we could see a bigger drop, down to 7240 and then 7180 in the first instance. 

FTSE 100 price chart

DAX sellers take the reins

So far DAX sellers have had it all their way since 7am, with a drop below 12,000 suggesting further weakness is on its way. Support may be found at 11,920, and just below this 11,890, with a bigger drop risking a move to 11,720.

Any rally has to get back above the 50-hour simple moving average (SMA) at 12,030, and would then target 12,100.  For now however it looks like we are at the start of a bigger move lower, perhaps down to the 50-day SMA at 11,695. 

DAX price chart

S&P 500 looking up

The S&P 500 price has now moved back to test the 200-hour SMA (2370) for the first time since 28 February. If this holds then a move back to 2385 and then onwards towards the all-time high at 2400 could be possible.

The peak from last week was 2370, before Donald Trump’s speech which so emboldened risk assets. Further weakness below this level could result in a dip to 2350 or 2340. 

S&P 500 price chart

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