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

UK indices have come back in a cheery mood, but European markets are more hesitant as the next round of French elections looms. 

Indices figures
Source: Bloomberg

FTSE 100 lower high in place

The FTSE is continuing to claw back losses from last week, with the new month getting off to a good start. The first target for the bulls is a move back above the 7303 high from last week. Coupled with a move back above the 50-day simple moving average (SMA) at 7309, such a development would signal another attempt to break the downtrend off the March highs is in play once more.

Bears need to get the price back below 7192 to suggest another push towards the 7090 low from April. At present, the overall trend is downwards, with a lower high in place from last week. 

DAX awaiting French election

European markets seem to have entered a period of limbo before the second round of the French presidential election. Given that this is still several days away, we may have to endure a few more sessions of aimless wandering for the likes of the DAX.

While 12,517 is the peak from last week, even this has proved too tricky for the index, with upward moves petering out around 12,490. So far there is little sign that sellers will drive the price below 12,408, the necessary first move in any longer term bearish move. 

S&P 500 sticks to 2400 for now

The S&P 500 has remained within touching distance of 2400 for the past few sessions, with no sign so far that it is about to move lower. A breakout requires a daily close above 2401, to put the index back in new all-time high territory.

 Meanwhile, any bearish move requires a drop below 2370 and then the 50-day SMA at 2364, which would open the way to 2321. 

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