FTSE 100, Dax and S&P 500 all rally
After an impressive turnaround on Friday, indices have started the week with solid gains.
FTSE 100 bounces from support
The FTSE 100 has rallied off the 5800 support zone that held all the way through last week. This matches the price action seen earlier in the month when the 5800 area was similarly defended. Last Wednesday’s high at 5975 will be a key test – if the price can clear this then a move back towards 6105 and the September high comes into view.
Dax surges in early trading
Friday’s price action saw a dip to a near-two month low for the Dax, but buyers came storming back to push the price back towards 12,600. Further gains target the 12,800 area where sellers prevailed on Wednesday, and if this is exceeded then 13,300 comes back into view. A turnaround below 12,400 is required to indicate that the sellers have the upper hand once again.
S&P 500 enjoys strong gains
Trendline watchers will be enthused by the break above resistance today, as the S&P 500 price builds on the action from Thursday and Friday, when it bounced off the 100-day SMA (3220). This leaves it clear to target the 50-day MA at 3358, and then on towards 3450. A reversal back below 3250 revives a more negative view, although even then it will need to clear 3200 to the downside to provide a firmly bearish outlook.
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