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

European markets are weaker after shooting higher yesterday, while the S&P 500 continues to tiptoe lower. 

FTSE 100 still bogged down around 7770

The FTSE 100 bounced spectacularly off trendline support yesterday, but it has once again stalled around the 7770 area.

A firm push above 7800 opens the way to the recent record highs at 7900. The bullish outlook remains unless we see a move back below 7650.

DAX breaks key resistance

Yesterday’s surge saw the DAX break through the descending trendline from the all-time high recorded in January.

Crucially, the price has remained above the line this morning. Now it needs to breach the area around 13,200, which marked the high in May. Above this 13,400 and then 13,600 come into view.

S&P 500 falls back from high of the week

While European markets have surged, US indices have been less bullish. Yesterday’s price action saw the S&P 500 fail to push on from the highs of the week at 2790.

Further declines may well return to the rising trendline from the May lows, suggesting a test of support around 2750.

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