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

Rallies last week got sold, but dips were bought too, however it looks like the sellers have the upper hand heading into the new week.

Data board
Source: Bloomberg

FTSE 100 puts bears in strong position
The new week begins close to 6100 for the index, much as the last one did. So far, gains above 6150/6180 have proven hard to sustain. However, sellers have been unable to break below the 6050/6100 area, so this provides good levels to watch for the time being.

Any break higher must manage a daily close above 6180, and ideally above the 50-day simple moving average (SMA) at 6202. A move downwards would have to clear 6050 on a daily close, at which point we would look to sell strength as it appears.

Dax brings out the sellers
A rally towards 10,100 brought out the sellers last week, while on the downside dips down to 9750 ran out of steam, making these the key areas to monitor for the time being.

If the index fails to push on above 9960 today, then it looks like we could test the bottom end of the range, while a break above 10,000 could indicate another push to 10,100. A break above here still targets 10,500 and the April peak.

S&P 500 puts bulls on back foot
Much was made of the bounce off the 50-day SMA last week, but you don’t hear those bulls crowing now, after Friday’s finish took the index below this level. Now we look to see whether 2037, key support since the beginning of April can hold.

If it breaks then the next target is the area defined by 2005 – 2015, containing a second weekly support pivot (2015) and the 200-day SMA (2009). Any bounce from the current area around 2045 would need to clear 2060 and then 2070, at which point bulls could conceive of a move to 2100. 

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