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

Despite early weakness, we are seeing a resurgence for the likes of the FTSE and S&P 500, while the DAX continues to consolidate following a substantial day of gains yesterday.

Trader in stock exchange
Source: Bloomberg

Early FTSE weakness turns higher

FTSE remains within an uptrend over the past week, despite early selling at the open today. Crucially that weakness saw a pullback into the 76.4% retracement, only to spike higher once more.

Thus the bullish outlook remains unless we see a break below the last swing low of 6808. Given this, another leg higher is expected, with 6863 the next resistance point of note.

FTSE 100 price chart

DAX consolidation likely to spark next leg higher

The DAX saw a massive move higher yesterday, with the index breaking through a number of key resistance levels on the way. So far this morning has seen sideways consolidation and given the trend over the past week, there is good reason to believe we will see another move higher from here.

However, given the risk of a deep pullback of yesterday’s move, it makes sense to await an hourly close above 10,703 as a signal that we will not see a deeper pullback. 

DAX price chart

S&P 500 remains within range

The S&P 500 is in the process of bouncing from the 2178 support region once more, in a continuation of the range that has held for almost five days now.

The current resistance is being provided by the ascending trendline which was broken overnight. Essentially we expect this pattern to hold until the index posts an hourly closed candle above 2187 or below 2177.  

S&P 500 price chart

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