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

Indices remain under pressure, with rallies still being sold. However, Inauguration Day may well see further indecision prevail.

Data board showing prices
Source: Bloomberg

No sign of a FTSE 100 rally

7260 marked the limit of the FTSE’s rally yesterday, with the index hitting new 10-day lows during Thursday. An overnight consolidation has seen resistance at 7220 tested, but so far there is little sign of a rally developing.

Support is possible at 7181 and then 7157, with a bigger drop potentially taking the price on to 7000. A rally needs to clear 7260 and then move on above 7320.

DAX may remain indecisive until after the inauguration

The range-bound trade goes on here, with a rally yesterday finding resistance at 11,640 and the weakness from Wednesday hitting support around 11,530. We have seen little firm direction here, and until the inauguration is done this indecisiveness may persist. Further weakness could find support at 11,440 and then 11,300.

S&P 500 may be losing ground

There is an inescapable feeling the S&P 500 is slipping lower, with each bounce in recent days getting weaker and weaker. The 2270-2275 zone has acted as significant resistance, but so far the bears have been unable to break the 2260-2265 zone. As a result we wait to see whether the index closes above 2275 for a bullish breakout or below 2260 for a bearish sequence to begin.

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