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

Indices have given back their gains from Friday, and are under pressure once more.

FTSE 100 turns lower early on

Friday’s gains were rapidly reversed late in the day, and the FTSE 100 finds itself testing possible trendline support from the March lows.

It continues to be constrained by trendline resistance from the May all-time high. A break below trendline support would signal another test of the 7500 area that held last week. Below this, 7340 comes into play as possible support. A push above trendline resistance around 7720 would open the way to 7800 and then 7900.

DAX still under pressure

Dips into the area around 12,100 have found buyers over the past few days, so if this continues to hold then the possibility of a bounce increases for the DAX.

However, the index has been unable to hold gains around 12,400, so we wait for a clear break outside of the range. A drop below 12,100 would open the way to a move back towards 11,700. While above 12,400, we see 12,600 and then 12,954 come into view.

S&P 500 unable to hold its gains

On Friday, for the second time in a week, the S&P 500 rally faltered around 2740 and met heavy selling. The index has now pushed back towards 2700, with the area from 2690-2700 providing support last week.

A close below here would see 2676 tested as possible support. Below this, trendline support from the February 2016 low comes into view around 2650. A close above 2740 would signal that the buyers are in charge again, suggesting a move back towards 2790.

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