FTSE 100 rallies, while DAX and S&P 500 remain muted

The FTSE 100 is moving off the lows of the week, while overnight gains in the DAX are wavering, and the S&P 500 readies itself to break higher.

FTSE 100 pushes back to 7200

The FTSE 100 has continued to hold above 7130, the lows of the week, despite the drop in the latter half of the session.

GBP strength continues to be a significant factor inhibiting any rebound, while any substantial recovery must hold above the 50-hour simple moving average (SMA) at 7168 and then move above 7200, which stifled the bounce earlier in the week. A move back above this level would leave the way clear for a steady move back in the direction of 7440. A close below 7130 brings 7100 and 7000 into view.

DAX struggles in early trading

While the DAX struggled yesterday, the pullback created a higher low around 13,050. That rebound is under threat this morning, as overnight gains stall around the 50-hour SMA (13,121).

If this moves back below short-term trendline support from the Tuesday low, and then below 13,050, then a more bearish view may develop. Further gains above 13,130 would target the mid-week highs around 13,175, and then on to 13,300 if bullish momentum continues.

S&P 500 looks poised to break higher

The recovery from the drop in the S&P 500 earlier in the week continues, bolstered by more positive trade headlines.

A solid move above 3,125 continues to elude the index, which has failed to push through this level all week, while rising trendline support comes into play around 3,115. Above 3,125, the price heads towards 3,160 and the previous records. A break of rising trendline support could signal a revival of bearish momentum, heading back to the 3070 low of Tuesday’s session.

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