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

The new month has begun with gains, on hopes of an easing of trade war tensions.

FTSE 100 breaks through resistance

The week has started with the FTSE 100 leaping to the 50-day simple moving average (SMA) of 7127, having taken out the resistance levels around 7060 and then 7105.

The next areas to watch are 7127 and then 7200, the high from the beginning of November. Trendline resistance from the August high comes into play just above 7200. Having gapped higher, the index may retreat slightly, but these may well be further buying opportunities.

DAX steams ahead

The DAX has surged, rallying to a near three-week high. The first point of interest will be the 50-day SMA (11,603), which has been problematic for the index since August.

Rallies above here since then have been short-lived, so a sustained push above here would be viewed as bullish. From here, 11,704 comes into view, and then the October high at 11,850. Dips back towards the overnight gap at 11,400 would still be possible buying opportunities.

S&P 500 revisits recent highs

The gap higher has carried the S&P 500 back above 2811, towards the 2820 peak from October and November.

A breakout above here brings 2877 and then 2940 into play. Dips back towards 2740 remain buying opportunities.

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