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

A falling pound has once again helped the FTSE 100, but Europe has stalled and US markets look weak. 

Data board
Source: Bloomberg

FTSE 100 makes gains

Another drop in sterling continues to flatter the FTSE 100, causing the index to shoot higher once again. The 7130 mark, the high from 4 October, is now the area to watch as a move above here will put the index in new all-time high territory.

A bigger dip, towards the 200-hour simple moving average (SMA) at 7000, might provide a more attractive entry point, while a larger fall would push us towards the rising September trendline at 6950.

DAX struggles to push forward

European indices are not able to match the FTSE’s exuberance, with the DAX still unable to push on beyond 10,650, where gains have stalled thus far in October.

In addition, 10,700 acts as another area of potential resistance, while a breakout above here targets the August high at 10,800. Weakness could see the index push back to 10,450 or even down to 10,250, the September lows. 

S&P 500 halted by 50-day SMA

Despite a bounce yesterday, the index continues to show reluctance to push on beyond the 50-day SMA at 2166.

We may be seeing a reassertion of the rangebound trading that is likely to push the index back to 2145, which has acted as support throughout the last few weeks.

A rally needs to clear 2170 and then push on to 2180, and then 2195.  

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