Levels to watch: FTSE 100, DAX and S&P 500

Equities have recovered somewhat, with the FTSE 100 in particular enjoying healthy gains.

Source: Bloomberg

FTSE 100 continues its ascent

The FTSE 100 has managed to claw its way higher over the past four days, and is now poised to break above 7696 and move on to challenge downtrend resistance around 7720.

A close above this line would target 7800, and then on to 7900. A move below 7620 would suggest the sellers are back in control, and would head towards 7500.

DAX stages a turnaround

While the sellers have been in charge for most of the week, the DAX has spent the previous three sessions finishing well off the lows, with steady buying developing around the 12,100-12,200 area.

If the index can move above 12,400 then the buyers will likely reassert control, targeting 12,600 and higher. A close back below 12,100 would likely break the support zone that has held over the preceding two days.

DAX price chart

S&P 500 clambers off the lows

Dips below 2700 have found buyers, and a solid gain today for the S&P 500 would likely suggest a near-term bottom has been found.

From here, 2732 and then Wednesday’s high at 2746 come into play. The next targets on the upside are 2791 and then 2802. A close below 2700 suggests a move back to possible support at 2676.

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