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

The year 2017 has begun with bulls firmly in control in London, and putting in a decent showing in Europe too.

US trader
Source: Bloomberg

FTSE 100 hits record highs

The new year has got off to a flying start, with the index breezing to new record highs in the opening minutes of the session.

Bears, if there are any to be found, will need to shift the index below 7100 to suggest that weakness is in store. Otherwise, 7162 and then 7126 are potential areas of short-term support.

DAX sellers eye 11,400

A falling euro and good PMI numbers have buoyed European markets, with the next area to watch for the DAX being 11,810.

This was last seen in July 2015. From here, the index will head towards 11,925 and then 12,085. Sellers will want to see the index push back below 11,400 for indications of a meaningful pullback.

S&P 500 could test 2220

The year 2016 ended on a sour note for the index but the losses of that final session have been recovered, with resistance at 2255 being tested.

A break above here would head towards 2262 and 2272. A failure to hold above 2250 would lead to a test of 2237 and then 2220. 

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