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

Bulls appear to be regaining control, particularly on the FTSE 100. 

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Source: Bloomberg

FTSE 100 appears to have breathing space

The buyers are stepping up to the plate again, helping to lift the index from its lows. With the pound back below $1.26 versus the US dollar, the FTSE may have the breathing space it needs to move higher.

Bulls will still need to clear the 7200 hurdle, which will open the way back to the all-time highs. Bears have once again to break 7130, and then post a daily close below 7100 to indicate more downside is on the way.

DAX can gain as long as support holds

Yesterday saw the index find support around 11,600, so long as this holds we could see a move back to 11,750, and then on to 11,800 and then 11,900.

We would need to see sustained price action below 11,500 to suggest a downtrend, rather than just a consolidation, is in play.

S&P 500 eyes 2290 and beyond

Having bounced off 2267, the price now needs to clear 2290 to be in with a chance of heading back to the all-time high at 2305. A move lower requires a close below 2267 and then down to 2237.

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