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

Markets are looking a little stronger this morning, after tough end to the week despite a better NFP report.

FTSE 100 tries to rally off Friday lows

The FTSE 100 dipped to a four-and-a-half month low on Friday, before rebounding and finishing above the 7280 level.

This might suggest that we see further gains, with a close above 7340 an important first step. This would open the way to 7490. A close back below 7280 suggests a retest of the 7226 low from Friday, and then down to 7127.

DAX steady near five-month lows

Intraday rallies continue to be sold here, as the DAX pushes on towards 11,700 support.

A close above 12,000 might suggest a short-term rebound is at hand, but a recovery above 12,100 is the real precondition for any sustained bounce.

S&P 500 looks to rebound

The declines for the S&P 500 have been smaller than in Europe, with only a modest pullback to the late August levels.

The move below 2877 could signal broader weakness, towards the 50-day simple moving average (SMA) at 2833, or the 2800 support level. A rebound above 2877 suggests another attempt at the recent record high.

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