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

The week looks to be ending with a whimper, with indices unable to establish a clear direction. 

Data trader
Source: Bloomberg

FTSE 100 still has a chance to bounce

The FTSE has returned to the 7400 zone that has sustained bounces over the past month. A daily close below 7385 is a bearish development that could open the way to 7260 or even 7090.

There has been little sign of upward momentum over the past few days, with a steady drift lower. Nonetheless, if the 7377 level holds then a bounce is still possible.

DAX finds support

Having touched 12,950 earlier this week, the pullback has found support around 12,700. The possibility of a bounce is still there for the DAX, as long as 12,700 holds.

Since mid-May we have seen a progression of higher lows, so we need to see a push below 12,500 to really negate the optimistic outlook.

S&P 500 could return to the highs

An area of support this week was marked at 2430, so there is still the possibility that the S&P 500 will return to the highs at 2454.

It will need a firm close below 2420 to start to reverse the still-bullish outlook, and even then, a move to 2400 and the previous all-time high could be all that the bears get. 

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