FTSE 100 and DAX weaken but S&P 500 surges to new record

US indices are in strong form, but the same cannot be said of European markets, which are under pressure this morning.

FTSE 100 clings on above 7500

The FTSE 100 continues to drift below rising trendline support from the June low, although losses have been contained above 7500 for the time being.

Rallies to 7560 over the past week have run into resistance, so the index finds itself now in a 60-point trading range. Above 7560, the price heads to 7620. Further declines below 7500 target the 7450 zone in the first instance, then down to previous support at 7375.

DAX continues to push lower

A series of profit warnings this week have weighed on the DAX, with Daimler this morning causing another slump.

Rallies to the 50-hour simple moving average (SMA) at 12,377 have faltered, and lower highs and lower lows have been established since the first week of July. Further declines head to 12,250 and then 12,165. A rally back above 12,450 would help to reverse the short-term bearish view and suggest a revival of the longer-term uptrend.

S&P 500 at new record high

A fresh record high for the S&P 500 this week continues the bounce from 2960.

The next upside target may be 3030, while dips towards 2985 may find short-term trendline support from the 9 July low. The potential zones of support are 2960, 2940 and then 2910, in the event of a possible downturn.

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