Levels to watch: FTSE 100, DAX and S&P 500

New momentum has propelled the FTSE 100 higher, but the DAX and S&P 500 are both under some pressure.

FTSE 100 rally finds new lift

A new record high for FTSE 100 was posted early in the session, and with momentum so strong we have to look to lower time frames for potential entries.

The 50-hour simple moving average (SMA), of 7718, has provided support over the past two days, so this could provide an area for entries. While the deeper pullback to the 100-hour SMA on Monday could be another example of what to look out for. Below 7705, the 7690 and 7650 areas could be places where support may materialise.

DAX fights to hold support

It is interesting to watch the DAX repeatedly test the 13,352 high from mid-December.

Dips below this tend to find buyers, and even a broader drop would still find support at 13,211 and then 13,095. Gains this week have petered out around 13,400, so a strong move through this area is needed to clear the way for a run to 13,533.

S&P 500 edges lower for now

The current pullback for S&P 500 could provide a short-term buying opportunity, with support possible around 2737 and 2729 in the first instance.

Overall, the bullish outlook remains firmly in place.

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