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

Indices have regained their bullish outlook, thanks to Janet Yellen.

Source: Bloomberg

FTSE 100 on the rise
The brief dip below 6100 yesterday has been swiftly cancelled out, with Janet Yellen’s speech playing a major part. If the index continues higher, then the 6200/6220 area is once again the next area to watch.

A move above here still targets 6324 and then 6450. It may well be that we have seen the end of the consolidation period, and that the index is now ready to move higher.

DAX gains support
Yesterday’s bounce off the daily trendline was a textbook move, with the 9800 support area also coming in nicely to hold up the market. Now the bulls need to push on beyond 10,100, the highs from last week. A move through here would target the 200-day simple moving average at 10,381, and then on towards 10,486. 

S&P 500 heads higher
Janet Yellen has emboldened US equity bulls, and confounded those who thought the dollar was heading higher. The break through the previous recent highs around 2053 suggests that we will see the index head towards 21, last seen in early December.

There may be some resistance as it attempts to break back above the rising daily trendline, around 2080, but for now it looks like the path of least resistance is higher.

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