European markets struggle as US stocks aim for a bounce
While US markets rallied off their lows yesterday, the overall cautious view continues to prevail.
FTSE 100
A bounce from yesterday’s low around 7000 helps to negate some of the negative view for the FTSE 100 with dip buyers aiming for further progress back to 7200 and higher, driven by recovering risk appetite.
Sellers will want to see a drop back below 7000 to open the path to additional downside, putting further pressure on the longer-term move higher.
DAX
Here the bounce appears to have stalled, as the price retreats from 15,816. Yesterday’s low around 15,640 will need to hold if the bullish view is to remain broadly in place.
Further gains above 15,800 target the record high around 16,000.
S&P 500
Yesterday’s bounce seemed to promise a swift recovery, but some of that has eased off with the price dropping back below 4400.
Below 4360 and the S&P 500 heads towards 4240, while a rally above 4420 restores the bullish view and brings 4480 into play.
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