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

The steady move higher in indices has been rudely interrupted, although the damage is not terminal.

FTSE 100 fails to escape trade tensions

The FTSE 100 has suffered a sharp reversal over the past 24 hours, falling back from 7700.

The price continues to hold the rising trendline from the March lows, so buying may develop around 7610. The next areas to watch for possible support are 7540 and then 7490. A renewed push higher targets 7706, with a close above here suggesting further bullish strength.

DAX whacked by trade war concerns

Trade war fears have wiped out the gains from the previous three sessions for the DAX. A push below 12,447 would bring 12,408 into play, then 12,284.

A bearish development requires a close below the 12,100 lows of late June. A turn higher would target 12,500, then on to 12,650, restoring the bullish view from earlier in the week.

S&P 500 drops back from key resistance

The S&P 500 has faltered at the 2790 area, dashing the hopes of those that thought it might push on through 2800, but it was always unlikely that the price would move through this area of resistance in one push.

One area of possible support is 2740, having been a level of resistance previously, and then back down to the 2690 area.

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