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

With the Dow Jones hitting 20,000, will we see the party continue for European and US indices?

Data on screen
Source: Bloomberg

FTSE 100 could move higher

Strength in sterling yesterday meant that the FTSE 100 was unable to join in the general market rally, gaining only 14 points. However, with other markets moving higher London may still join in. The crucial 7130 level, which was resistance back in October and marked the previous all-time high, has now become support, so we would need to see a close below this level to indicate more downward momentum is on its way.

We now look for a daily close above 7200, with 7309 and then 7359 becoming the next levels of resistance. Below 7130, 7061 and then 6945 would be possible areas of support. 

DAX eyes 12,300

11,920, the high from May 2015, is now within touching distance, so a break above here would leave the index poised to target 12,100 and then 12,300. Unless the price turns below 11,500 we should be looking to buy on the dips, with a retreat likely from the current intraday overbought levels.

The 11,800 and then 11,757 levels could be areas where buyers look to re-enter the market. 

S&P 500 moves to record highs

The excitement of Dow 20,000 masks the important fact that the S&P 500 has also moved to new record highs, with a breakout from the December-January consolidation. Weakness today could see a move back to 2280, but so long as this holds upward momentum should be intact.

2284 is also a possible intraday support level where buyers may enter.

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