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

It has been a choppy start to the day, with the FTSE struggling but European markets pushing modestly higher.

Traders in a German stock exchange
Source: Bloomberg

FTSE continues to slip

The index continues to edge lower, with little sign of fresh progress above 7050. Yesterday we saw 7024 provide some support, but it looks like we could see a bigger move down to 7000, with 6040 beneath that as the next area to watch.

Fundamental concerns may be playing a part, with the index trading at around 59 times forward earnings, versus 23 for the EuroStoxx 50 and 20 for the S&P 500. Bulls need to get the index back above 7050 to be in with a chance of breaking out above 7100. 

DAX appears indecisive

The morning has seen clear indecision about whether the index will push on through 10,650 and challenge the late-September high at 10,700, or whether another dip is in the offing, perhaps testing 10,450.

Bulls still have their eyes on 10,800, the summer highs, and a break through here in order to establish a fresh high and keep the longer-term trend going. Meanwhile the bears will want to break 10,450 in order to move back towards 10,250. 

S&P 500 still hopes to challenge all-time highs

The area around 2140/2145 continues to prevent any further downside, discomforting the bears and giving hope the index can still push back towards 2175 and then on to its summer all-time highs at 2195. Any move through 2140 would bring the 2016 trendline into play, potentially around 2137. 

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