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

It turns out Donald Trump is great for markets. After the early morning dive yesterday, buyers have come back with the surge continuing today. 

Data on screen
Source: Bloomberg

FTSE 100 on course to test 7130

It is as if yesterday didn’t even happen. The November dip came and went in the space of hours, with the index now firmly on course to test 7130.

During October, 6940 provided support, and it may do so again, particularly with the price overbought on an intraday chart. The 50-day simple moving average (SMA) at 6904 could also act as support. 

DAX eyes 11,500

The price is back at 10,800, having travelled over 800 points in the course of yesterday’s session. A breakout above here could see significant bullish momentum, heading towards 11,000 and then 11,500.

Weakness would still be seen as a chance for fresh buying, with a move back below 10,551 needed to indicate the bounce has run out of steam for the DAX.

S&P 500 could see fresh buying opportunities

If the price holds above 2181 today then it will have reclaimed the 2016 uptrend that it broke below in the course of early October.

Further moves upwards should create a new higher high, signaling that the long drift from the August peak is over. With the index now overbought intraday according to momentum indicators, chasing this rally could be a fool’s errand, but we should be looking for dips to provide fresh buying opportunities. 

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