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

Although negative this morning, yesterday’s bounce seems to have brought the losses of the past week to an end.

Source: Bloomberg

FTSE 100 looks to push on

A bounce yesterday seems to suggest that the market has found a bottom towards 6650. So far this morning, dips towards 6700 have brought out buyers, so now we look to see if the price can push on beyond 6750 and the high from the early action on Monday at 6770.

Crucially, seasonality will begin to kick in from this point onwards, with October-December a historically strong period for the FTSE 100 (on average, over the past 20 years). 

DAX finds level of support

Although weaker this morning, the price found a firm base this week around 10,300, and from here it pushed higher yesterday.

The 10,470 mark is the area to watch, being the region of yesterday’s highs, and a move through here then opens the way to 10,560 and the high from the beginning of the week.

It would need a firm push below 10,300 to signal more weakness for this index, potentially moving towards the 100-day simple moving average at 10,193.

S&P 500 gives bulls the advantage

The strong move higher for the index yesterday has handed the bulls the upper hand, having seen a base formed around 2110, and then a higher low yesterday at 2115.

A move through 2150 opens the way to 2164, with the next target being 2190. Sellers need to clear 2110 to raise the prospect of more downside. 

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