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

European markets have been bolstered by yet another rebound in the US, but markets remain under heavy pressure.

FTSE 100 tiptoes higher

The FTSE 100 has managed to rally off the lows of last week, and has created a higher low, finding some support around 6700 yesterday.

We are not yet seeing much follow-through to the upside however, with 6800 and then 6860 the first area of possible resistance. Below 6700 the 6670 and then 6640 areas are possible support.

DAX’s rally off the lows runs into trouble

Monday’s session saw the DAX hit a new two-year low, at 10,584, but there has been a small rebound off this area so far this morning.

However, gains continue to be capped below 10,750. A break higher from this area will challenge 10,900 and then 11,050, while the bearish view requires a daily close below 10,600.

S&P 500 holds 2600

Once again, a dip towards 2600 brought out the buyers, and the S&P 500 is now back in the 2620-2820 range that has prevailed since mid-October.

Above 2647 the price targets 2709, and then on to 2800. A daily close below 2600 is needed to put a firmly bearish outlook on the index.

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