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

Weakness yesterday seems to suggest that the risk rally of the past few days has run its course. 

US traders
Source: Bloomberg

FTSE 100

A declining pound continues to prop up the FTSE 100, with the index almost the sole gainer among major indices. The 6500 mark continues to hold for the time being, with gains trapped by 6600.

A break below the former level would head towards 6380, while if the rally recovers and moves above 6600 then the next target is 6760. 

DAX

A sharp reversal yesterday dents the bullish outlook, but for now the price is holding above the key 9440 area. If this gives way then we could see a swift drop down towards 9200 and then below this the lows of February, 8875 and further down, would come into play.

A bounce from here would need to break the high seen on Monday above 9800, which then opens the way to the 200-day simple moving average at 10,075 for the DAX.

S&P 500

A lower close today, perhaps below the 50-day SMA (2076), would likely set off fresh moves to the downside, with 2050 and then 2037 coming into play.

Below this the next area to watch is 2000, the post-Brexit low. Any breakout in the S&P 500 needs to clear 2010 and then head past the June high of 2128. 

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