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

As the UK goes to the polls, volatility is almost certain for the indices with traders seeking to position themselves ahead of this huge risk event.

All trading involves risk. Losses can exceed deposits.
Data on screen
Source: Bloomberg

FTSE 100

Even the UK's referendum has not held back the index, which is now pushing above the 6300 high from late May/early June. The next target becomes 6420, which marked the peak back in April.

Crucially, the index finds itself now firmly above the 50- and 200-day simple moving averages (6204 and 6153 respectively), with a strong close today putting it above the downtrend line from the April 2015 highs. Sustained price action below 6200 would negate the bullish outlook.

DAX

Despite some poll-related volatility, the index's rally goes on, with 10,400 and then 10,500 still the next upside targets to watch. Gains above here would head towards 10,860, the peak from late December.

This would also mark a definitive move above the index's own downtrend line from the peak last year.

S&P 500

US markets had another good day yesterday, although they continue to lag behind those in the UK and Europe.

A move above 2100 would then target the peak from earlier in the month, above 2122. This would put it above the longer-term descending channel.

With the trend off the lows of the year still higher dips should continue to see buying in the index.

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