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

Indices have staged a recovery this morning, although caution persists ahead of non-farm payrolls later today.

Data board
Source: Bloomberg

FTSE 100
Small gains so far this morning mean that the rally since 24 June remains intact for the index, although we have yet to see a significant push above 6600.

A close above here would head towards the August 2015 high around 6770, and then from here the next move is to 6815 and the July high. So far downward momentum has run out of steam around 6440, so if this is broken the next area to watch would be 6300.

The bears have not had much joy this week, as the downward move that began on Monday rapidly ran out of steam.

A bounce this morning is carrying the index back to 9500 and the high of the previous two days, while the sellers will need to get the price below Wednesday’s low of 9300, which then clears the way to the late June low at 9200.

Above 9500 the index will target the peak from a week ago at 9800. 

S&P 500
US markets resisted the temptation to go lower last night, with 2090 providing a support level. Now we need to see if the price can clear 2110, with the next potential resistance area at 2120.  

Above here the next target is the all-time high at 2135. A breakdown of upward momentum would need to clear 2090 and then 2080, with the move carrying it to 2037 and then 1990. 

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