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

The buyers have returned, drawn by the bargains on offer across equity markets after last week’s sell-off.

FTSE 100 continues its rebound

The FTSE 100 saw a healthy rebound yesterday, building on the gains from earlier in the week. While this is certainly welcome for the bulls, the price is still struggling around 7080.

A close above this level, which has marked the limit of gains over the past few sessions, would send a signal that the buyers are in control. Dips below 7000 have continued to find buyers, so any weakness may see fresh support around here. Above 7080, 7127 and then 7200 are upside targets.

DAX surges off the lows

Here the DAX has breached the 11,704 area that marked the limit of rebounds from the low last week.

Pullbacks to 11,700, or even just below this, would provide fresh entry points for longs. The index has been in a downtrend since May, so a daily close above 12,450 is needed to break the sequence of lower highs.

S&P 500 leaps upwards

Tuesday’s session saw the S&P 500 breach the 2785 area that held back progress over the previous three sessions.

Dips back to this area may find buyers, while further upside progress would target 2845 and then 2877. A close below 2775 would signal a possible retest of the recent lows around 2700.

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