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

After yesterday’s surge things have calmed down, but overall the bullish trend remains intact.

London skyline
Source: Bloomberg

FTSE 100 eyes 7400

The FTSE’s break higher certainly puts the bulls back in charge. A small dip overnight has been met with fresh buying, but those looking to hop on board may wish to wait for a bigger pullback;

The first area to watch for is 7360, being the previous all-time high seen in January. The rally petered out yesterday just shy of 7400, so this is the first area to watch. 

DAX in the hunt for all-time highs

The rally stumbled around 12,081, being the high from May 2015, Above this we have 12,170 and then 12,306, with a breach of the latter meaning the DAX would join in the frenzy of all-time highs seen across major indices.

Ideally a pullback to 12,000 would offer the chance to enter the rally, but so long as the price holds above 11,950 it looks like further upside is to be expected.

S&P 500 rally will take some derailing

A drift back from the overnight highs leaves the S&P 500 still happily within its rising trend, both on the hourly and longer-term charts. In reality, it would need a drop back below 2370 to imperil the rally – dip buyers may well continue to seize on any weakness as an excuse to buy more. 

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