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

US markets recovered from an early wobble, while in Europe, indices have resumed their march higher.

FTSE 100 trend goes on

The FTSE 100 continues to hold around 7500, holding the steep trendline from the April lows.

However, a deeper retracement would likely break this, even if it would require a move below 7350 to negate the series of higher lows. Above 7590 the index targets 7800.

DAX returns to its rally

European markets were relatively calm yesterday, and the broad upward trend remains intact for DAX.

The rising trendline from the early April lows is also still intact. Above 12,742, the 12,954 level comes into play, and then a move in the direction of 13,600. A break below 12,500 is needed to negate the positive outlook.

Buyers go shopping in the S&P 500

A swift dip for the S&P 500 yesterday to the 2596 level found buyers, thus the sequence of higher lows remains intact.

The daily chart shows the sharp rally off the lows, although we have yet to see a meaningful attempt to break above the 2700 level and the descending trendline off the January highs. Until this happens, we are likely condemned towards a sideways chop. 

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