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

As quarter-end arrives, indices have turned lower, with eurozone and UK indices in retreat and US futures looking weak.

data
Source: Bloomberg

FTSE 100

It is remarkable that we have spent five weeks trying to break through 6200, and five weeks failing to do so. It is possible that we now head back to the lows of the range for the FTSE, down towards 6100 and the first weekly pivot support at 6084, where we bounced on Tuesday.

Longer-term, the view is still dominated by the 6100-6220 trading range, and until one of these is broken we are essentially in limbo.

DAX

For the DAX, the level the bulls need to breach is still 10,100. Only when this is broken will the rally be back on. For now, the trend higher continues to be supported by the rising support line off the February lows, which would suggest a dip to 9900 or just below.

If this is broken then further support is possible around 9800, and then at the first weekly support pivot at 9729. 

S&P 500

Some of the euphoria following Janet Yellen’s speech has worn off, although the index is still above the previous highs around 2056. If it moves back below here then we may see a move to 2030 or even 2021, with 2004 the next real area where bulls may mount a stand.

A close above 2075, above the high from yesterday, would indicate that the rally is back in action. 

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