Levels to watch: FTSE, DAX and Dow

Europe has stumbled at the open this morning, but bears may find it difficult to push the market down given the strength seen in the US on Friday. 

Data
Source: Bloomberg

FTSE 100

Despite the strong finish for US markets on Friday, the new week has not begun well for the FTSE 100.

Last week saw further attempts to break 6200, while 6080 was crucial support on Tuesday and Friday. Since Wednesday we have had a sequence of lower highs and lower lows; a first step would be a move down to 6080, and a break through here targets the second weekly pivot at 5992.

For the time being, any bounce back towards 6200 may simply bring out fresh selling pressure. 

DAX

The index bounced from 9700 on Friday, but momentum stalled barely 150 points higher.

If the price cannot recover 9900 soon the risk is that we continue to move lower, through 9700 and then down towards 9615.

If this latter level is broken then we look towards 9254 as the next real area of possible support.

S&P 500

Fresh highs on Friday marked the end of a remarkable week for the index. Dip buying still appears to pay dividends, although we may see some weakness into the beginning of the week.

So long as the index holds 2050 then we should see a continuation of the ongoing rally. Upside targets lie around 2080 and then 2105. 

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