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

Small gains this morning are helping to recover some of yesterday’s losses, but with the ECB meeting still to come nervousness appears to be the overriding theme. 

Trader watching data board
Source: Bloomberg

FTSE 100 continues to oscillate
The index continues to bounce contentedly between 6100 and 6200, oscillating around the crucial 6125 area that may determine whether this market stands or falls. With the European Central Bank (ECB) meeting looming, we are not seeing any desire to push the market significantly in either direction, which at least provides clear levels for trades in either direction depending on the market reaction to Thursday.

A close below 6100 should signal more downside to come, with a first target of 5952 and the 50-day simple moving average (SMA), while a close above 6200 puts the buyers back in charge, with the December high of 6300 in prospect (and some resistance possible around the 200-day SMA at 6287). 

FTSE 100 chart

DAX awaits Draghi steer
A choppy day yesterday ultimately led to little change for the overall trend, although the small drop does suggest weakness for another session or so.

So long as the index holds above 9500 then another push higher seems likely, but with so much riding on what Mario Draghi says tomorrow it seems we will be at the mercy of fundamental news. 

DAX chart

S&P 500 looks to beat the drop
A steady drift lower yesterday puts the index back at the bottom end of its rising wedge, with rising support coming off the mid-February lows (and finding bounces on 24 February and 1 March).

A move upwards from this area would target 2000 and the top end of the wedge around 2015. Yesterday, 1980 acted as useful short-term support as it did on 3 March. So as long as this holds we can expect further upside. 

S&P 500 chart

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