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

Modest gains have been seen so far this morning, after US markets inched higher once again. 

US trader
Source: Bloomberg

FTSE 100

We finally had the open above 6700 that could indicate more upside momentum. The next target looks likely to be the 6820 area, last seen in July 2015. Yesterday’s modest dip brought out more buyers, although they now need to push on through 6745, the high from 14 July.

A failure to push on above here dents the bullish outlook, but it will take a move below 6650 to really send any indication that more weakness is on the way for the FTSE.

DAX

Having nosed above 10,000 very briefly, the index now needs to push on through the highs of the past two weeks, just above 10,100. Any failure to get above this, and through the 200-day simple moving average (10,080) as well, would likely suggest the downside case is gathering strength.

First support is possible at 9900, but a move through here would target 9800 and then on to the key 9440 area. Any break higher targets 10,168 and then the 10,400 area.

S&P 500

Days of sideways price action provide an interesting conundrum for traders. Even the dips are not particularly dramatic, providing little opportunity to hop on board.

The index so far shows little desire to push above 2170, but for the time being 2150 acts as support. A break below the latter would then head towards 2110. 

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