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

A post-NFP spike was sold heavily on Friday, indicating perhaps that indices are beginning to run out of steam. 

Trader
Source: Bloomberg

FTSE 100 heading down?

The FTSE price was knocked back on Friday from highs of around 7370, and, so far this morning, the same appearsto be happening.

If bullish momentum has fizzled out, we need to see a push below 7334, and then down to 7310 in the first instance. Further targets on the downside lie around 7253, the 50-day simple moving average (SMA), and then down to 7218 and 7174. 

DAX stuck under 12,000

Euro strength over the past few days should send a warning signal to eurozone stock bulls. The Friday bounce on the DAX was aggressively sold from 12,050, and while we have bounced from oversold levels intraday, the price is still stuck below 12,000.

Further weakness will arrive if the price falls below 11,927, and then we could be looking at a push to the 50-day SMA at 11,728. 

S&P 500 facing further drops

The S&P 500 has shown little inclination so far to recover the ground lost late on Friday. The spike above the 200-hour SMA (2374) was firmly sold, indicating a weakening momentum, which would chime with the broader pullback from the peak above 2400.

If 2355 is broken, we could be on the cusp of a much bigger drop, potentially down towards 2314 and the 50-day SMA. 

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