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

Indices are slightly lower this morning, but the bullish picture from last week remains intact.

US 500
Source: Bloomberg

FTSE 100 drops back below 7300

Friday saw the FTSE 100 push back above the 7300 level, but today the market is looking slightly overbought, so the early pullback is no surprise. However, we have had a steady move off the lows of mid-September, with higher highs and higher lows forming on the hourly chart.

Friday’s low at 7233 and then the mid-September low of 7195 are the support areas if the index continues to head lower. A turn higher will target the Friday peak at 7320, and then on to 7360, 7400 and 7450 if the rally pushes on.

DAX unfazed by election

DAX has wobbled following the election, but that is all. While the index is off the 12,650 highs from last week, it continues to hold above the 50-period simple moving average (SMA) on the four-hour chart.

Areas of support to watch for are 12,408 and then 12,310. As long as the index holds above 12,300, it remains poised for further gains.

S&P 500 consolidates ahead of push higher

The S&P 500 has barely budged from record highs. Potential areas of support are 2490 and then 2478, should this slight drop actually turn into a modest downward move.

It is hard to be particularly bearish here unless the index drops back below 2450. Otherwise, further upside will be the order of the day.

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