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

Risk-on is back, thanks to the French elections, with bullish price action across many markets.

Wall Street
Source: Bloomberg

FTSE 100 pushed up by the events in France

The French election result has turbocharged the FTSE, pushing it back above resistance at 7192, with an attempt at the next key level of 7253 already having been made this morning. If this gap up and move higher holds on above 7200 we could see another test of 7250, and then 7360 and 7380 come into play.

On the downside the 7090 level held last week, keeping the market above the January lows. We may well have seen the beginning of a new leg higher, potentially taking the index back, in the short term, to the all-time high at 7440.

DAX in recovery mode

A gap higher here has seen the DAX recover all the ground lost since the beginning of the month. Now all that is left is the 12,408 all-time high.

It looks like the dip buyers and momentum players have got firmly behind this move. While some retracement from overbought levels should be expected, as long as the index stays above 12,180, we can expect further gains. 

S&P 500 defeating the downtrend

An overnight gap up has put the S&P 500 back above the downtrend line that has prevailed since the all-time high of late February at 2401.

Bulls will now be looking to target 2378 and 2391, and then back to 2401. Some pullback intraday is to be expected, but a dip back to 2371 or 2365 could bring out more buyers. 

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