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

The steady recovery in risk assets goes on, following on from a record high last night in the S&P 500.

Source: Bloomberg

FTSE 100 continues to rally

The sideways action of the past week looks to have been resolved in favour of a move to the upside for FTSE 100, with the price pushing on through the 7409 area and aiming to head higher.

The 7427 and 7448 levels are the next ones to watch on the upside, with a move above here opening the way to 7550. It looks like the buyers have taken control, with strong late November seasonality aiding the move and further gains looking likely in December.

DAX recovery in place

DAX has broken higher, pushing back above 13,095 and moving outside the consolidation phase that lasted from Thursday until Tuesday.

A pullback could find support at 13,095, and even a dip back to 12,954 would still not invalidate the bullish view. Further gains will leave the index on course to challenge the 13,533 record high from earlier in the month.

S&P 500 surge resumes

A new record high for S&P 500 yesterday, and a breach of the 2600 level, confirm that the rally is back on.

While some weakness may follow on, the outlook seems to suggest more record highs as we head into December. The first areas of potential support look to be 2597, 2588 and then 2583. 

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