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

Mixed fortunes across European and US indices, with the FTSE 100 showing signs of weakness. Meanwhile, the DAX and S&P 500 hit new highs.

DAX
Source: Bloomberg

FTSE 100 turning lower once more

The FTSE 100 looks to be turning lower yet again, following a rally into the 7542 resistance level. Given the two recent attempts to break and hold below 7520, we could be seeing the beginning of another attempt to break lower here.

As such, a short-term bearish outlook is in play, where a push up through 7551 would negate this view.

DAX bouncing from trendline support

The DAX managed to break higher yesterday, with the price breaking through 13,027 to negate the bearish connotations brought by the move below 12,977. We now look towards 12,994 as the next bearish breakdown level, which would need to be broken to potentially lead this market on a more protracted move lower.

For the upside, watch out for 13,027, 13,034, and 13,039 as the resistance levels, which must be broken to lead us to another all-time high. For now, the uptrend remains intact, and as such, further upside looks likely. 

S&P 500 rallies into wedge resistance once more

The S&P 500 has rallied into trendline resistance again overnight, with the index creating a new record high above 2559. That previous resistance level is now providing support, which could point towards another leg higher and a break out of this pattern.

However, until then there is a good chance we could see the market retrace back towards the lower end of this formation once more.

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