FTSE 100 and DAX struggle as S&P 500 sails higher
European markets have lagged behind, but indices in the US are once again demonstrating bullish momentum.
FTSE 100 faces confluence of trendlines
The FTSE 100 faces a choice between two trendlines, short-term resistance from Wednesday’s highs and a slightly longer-term support line from last Friday’s low.
A breakout above 6050 would signal that a new attempt to push higher is underway, while by contrast a drop below 5970 would clear trendline support and the low of Thursday’s session, and open the path to 5870 once again.
DAX stuck in narrow range
For the DAX, the rally from Friday’s low has stalled this week, with progress hindered by resistance around 12,750, while downside has been limited by 12,500.
Therefore, a tight range has come into play, frustrating both bulls and bears alike. A break below 12,500 brings Friday’s low at 12,220 into view, while a rally above 12,750 would signal that a move towards 13,000 is underway.
S&P 500 keeps climbing
The S&P 500 has not looked back since it found support last week at 3200, moving smoothly higher over the past week, in sharp contrast to the lack of progress in the FTSE 100 and the DAX.
Further gains seem likely as the index begins to recover overnight losses, with the sequence of higher highs and higher lows firmly intact.
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