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

Fresh all-time highs in the US continue to make the headlines, but so far the DAX has yet to show quite the same enthusiasm.

Traders on a German stock exchange
Source: Bloomberg

FTSE 100

Having shot higher for two days, the index is entering a period of consolidation, with the potential for downside support at 6600 and then 6500.

Although the index has moved sharply higher, with new highs seen last night in US markets we may still see further upward momentum. A break above yesterday’s high at 6700 would signal more gains are on the way, with 6770 and then 6820 the next areas to watch. 

DAX

Although a push above the talismanic 10,000 eluded the index yesterday, it looks like more gains may still be on the way. If a bigger sell-off materialises then we look to 9800 and then 9700, with ‘buy on the dips’ still the approach to take here.

If 10,000 is broken then the 200-day simple moving average at 10,080 comes into play, and then from here the next target is 10,400, the closing highs of June and late May.

S&P 500

For the S&P 500 to be chasing an all-time high might not be the most prudent path at present, although it would not be surprising to see a further push higher, especially if earnings season puts a further positive gloss on the US market.

Nonetheless it does make sense to go with the trend, perhaps waiting for a more sustained dip for an entry. Potential support comes in at the previous highs of 2120, while yesterday’s high around 2156 is the level to watch for a fresh breakout to the upside. 

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