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

Despite yesterday’s rally, we are seeing some hesitation from the indices. However, with such a strong recent trend in place, a bullish view remains.

Data board
Source: Bloomberg

FTSE resurgence continues
The FTSE 100 continues to push higher, with yesterday seeing yet another sharp rally for the benchmark. We are seeing a period of consolidation overnight, with price currently moving higher towards the overnight 6922 level. Given the recent trend, there is reason to believe that the next move will be higher.

With that in mind, further upside is expected, yet we need to ascertain whether we will push higher from here, or retrace some of yesterday’s moves first. As such, a bullish view is in play unless we see an hourly close below 6808. We would need to see an hourly close below 6893 to provide evidence that we are about to see a retracement lower before another move higher. 

DAX likely to break higher once more
The DAX also pushed higher yesterday, with the index reaching a new seven-month high. Price is currently breaking lower from a period of consolidation overnight, with an hourly close below 10,708 looking like a good signal that we will see a retracement towards the 10,656 before moving higher. Ultimately, the bullish outlook remains in place until we see an hourly close below 10,630.

S&P 500 weakens from trendline
The S&P 500 also broke higher, with the index temporarily reaching a new record high. However, we saw a sharp rejection at the trendline resistance and as such, the breakout signal for another leg higher would come with an hourly close above yesterday’s high of 2188.

With that in mind, while there is a strong uptrend in place, the market has failed to really gain traction over the last week and we will await a breakout before getting long once more.

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