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

After a good week for the bulls, indices are a touch softer but the uptrends are still intact. 

Data trader
Source: Bloomberg

FTSE 100 about to move back up?

FTSE has seen another pullback overnight, as futures retreated from the 7380 level. However, buyers have stepped in at the 100-hour simple moving average (7338), suggesting that we have more dip buying in operation.

We now look to see if the price can breach the 7386 high from yesterday and then move back to 7400 and higher. Yesterday’s dip hit and bounced off the confluence of a rising trendline formed by the uptrend off the 27 March lows and the trendline off the February low. A move below the latter raises the prospect of a move back to 7300 and then 7260, with a break of this last level opening the way to 7130.

DAX nearing all-time highs

DAX is now fewer than 200 points (1.6%) from its all-time high, and from the look of trading this week dips will continue to be bought. The index has pulled away from the rising trendline off the 22 and 27 March lows, so even a bigger pullback might only be a sign of temporary weakness.

It would take a move below 12,080 to really indicate that the sellers are gaining the upper hand. A drop to 12,180 could entice some more buyers into the rally, and as long as the bounce continues the target remains 12,450.

S&P 500 to go up?

Yesterday saw S&P 500 push once again above the 2360 level that was resistance on 23 March.

After a pullback overnight we will see whether further bullish strength enters the fray, to push the price above 2370 and onto the descending trendline off the all-time. The next levels to watch on the upside high are 2392 and 2400.

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