FTSE 100, DAX and S&P 500 pause after recent gains

After the sharp rallies of mid-week, indices have paused for breath, but the overall uptrend is still in place.

FTSE 100 still edging higher

The steady recovery continues, with the FTSE 100 moving back above the 200-day simple moving average (SMA) yesterday, and intraday weakness continuing to find buyers.

Some weakness has been seen just below 7300, but if this is cleared then 7500 becomes the next target. Steep trendline support would come into play around 7230, and if this is broken 7200 is possible support. Below this would mark a reversal in the nascent bullish view.

DAX building on recent rally

The gains of the past few days have helped the DAX to restore a more bullish view, but there is much work to be done to recover the lost ground of late July.

Further gains above 11,850 head towards 12,030, and then on to 12,230. A move back below 11,650, the 200-day SMA, would begin to suggest that the downward move has been revived.

S&P 500 pauses after gains

The dramatic recovery of the S&P 500 continues. For now the index has stalled at 2940, but unless the price moves back below 2870 the sequence of higher lows from the Tuesday bottom remains in place.

Further gains target 2960, and then on above 3000. One possible bearish view would be the inability to break above previous trendline support from the December low, and also the current reluctance to move above the 50-day SMA at 2940. However, barring a reversal below 2870 the overall bullish recovery remains in place.

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