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

Overall it looks like momentum will keep pushing equities higher, despite trade war concerns.

FTSE 100 faces hurdle to rally

Momentum has continued to recover here, with the FTSE 100 touching a two-week high yesterday.

The price has exhibited some difficulty around the 7340 level, with a close below here raising the prospect of a move back to 7280 support. A close above 7340 solidifies the breakout we saw earlier in the week, and would suggest further gains in the direction of 7490.

DAX piles on the gains

The DAX built on Tuesday’s gains yesterday, moving further above 12,100.

A drop back to 12,100 may see buyers emerge, while even below this trendline, support from the September low would come into play around 12,075. The next target to watch as resistance is 12,400, followed by trendline resistance from the June highs.

S&P 500 heads back to record highs

A recovery late on in Wednesday’s session puts the S&P 500 back on track to hit the all-time highs seen in August at 2916.

Areas of possible near-term support come in at 2877 and 2864. A close below these would suggest further weakness, in the direction of 2802 support.

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