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

Yesterday’s gains were trimmed overnight, although there are still signs of bullishness.

FTSE 100 still struggling below 7720

The FTSE 100 mounted an attempt to push through the 7720 resistance zone, but it fell back in the overnight session. A further drift lower this morning indicates that this area is still proving troublesome.

However, a short-term rising trendline from the 16 July lows around 7564 could see support hold up the price. A close below 7620 would negate this and suggest a move back towards 7560. A push above 7740 is needed to finally break the resistance zone and open the way to 7800 and 7900.

DAX knocked back from 12,800

The DAX rally towards 12,800 ran out of steam, confirming this area as a hurdle to further gains.

Rising trendline support from the June lows comes into play around 12,570, while a close above 12,800 would open the way to descending trendline resistance from the all-time highs, around 13,050.

S&P 500 still on the up

While the rally yesterday encountered selling later on, the overall move higher is still intact for the S&P 500.

The close above 2803 indicates that a move to the all-time high at 2877 is possible. A close below 2790 would negate this more bullish view.

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