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

A strong finish last week for indices confirms bullish strength.

Source: Bloomberg

FTSE 100 edges back from closing high

A record close last week for FTSE 100 has reignited the uptrend, with some weakness this morning likely to be a temporary blip, before new highs later in the week.

The previous key area of 7533 has already seen buyers step in, with a push above Friday’s 7580 intraday high leaving the index with only the 7600 all-time high as the next target. The recovery last week back above the September rising trendline suggests that even a bigger dip towards 7500 could still merely be another buying opportunity.

DAX moves sideways

The sideways drift continues for DAX, with the index just below 13,500.

Potential support comes in at 13,200, being the bottom end of a rising channel that has held since the August low. Below this, 13,095 and then 12,954 come into play.

S&P 500 rally underpinned by firm foundations

S&P 500’s steady progression of higher lows and higher highs continues here. Weakness early last week found buyers around 2564.

The final area of resistance is 2590, before new all-time highs are reached. Buyers may emerge at 2563 and then 2544, if the downside gains some traction in the short term.

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