​​FTSE 100, DAX and S&P 500 make gains in early trading

​​​FTSE 100 clambers back above 7600 ​

The index begins the year in a much better position than others, fewer than 200 points off its post-pandemic highs.

The bounce from the end of December had stalled below 7500, but it remains firmly above the October lows. An initial recovery would target 7600, and then on to 7670, the February and April 2022 highs. Beyond this the index pushes on towards 7700, last seen at the beginning of 2020. ​

A reversal targets the mid-December lows the 200-day simple moving average (SMA), which provided support. Below this, the 7200 and then 7000 areas become potential areas of support.

​DAX at two-week high

​The bounce from the October lows ran out of steam around 14,500 during December, but losses have stabilised just below 14,000.

​For the moment, sellers have run out of momentum around 14,000, and the decline in the MACD has slowed dramatically, potentially suggesting the creation of a higher low that will leave the bounce intact. A renewed move higher would target the 14,500 level, and then above this the 14,680 and 14,820 areas come into view as upside targets. ​

A close below 13,700 would see the price breach the December lows and then target the 200-day SMA (currently 13,556).

​S&P 500 pushes higher

​Losses in the tech sector have weighed on the index since the beginning of December, resulting in continued losses that have pushed the price back below the 200-day SMA.

Recent price action has seen the price weaken below 3900, though since mid-December buyers have stepped in around 3780. For the moment the index looks in a bearish formation, with another test of 3780 likely.

A recovery above 3900 would help to revive the bullish outlook, while a move above 4000 would further bolster this view.

Sellers will look for further losses that bring 3700 and then 3600 into view.