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

The FTSE is recovering fast this morning, but eurozone markets have yet to see a similar bounce.

DAX logo
Source: Bloomberg

FTSE 100 to target all-time highs?

Yesterday saw an eventual pullback from 7200 on the FTSE, but over the past 12 hours, the 7160 area has acted as support. We have seen dip buyers coming back to push the market higher in early trading.

Now we look to see if the price can move through 7200. If so, the next targets become 7276 and 7348, with the record-high at 7359 then in sight. It will need a firm close below 7130 to suggest the bounce has run its course.

DAX clinging on to 11,400

There was more pain for European indices yesterday, and now we look to see if the 11,400 area can hold, as it did during the middle of January. A break below here would head towards 11,272, and then on to the 100-day simple moving average at 11,009.

The DAX and other European markets do not seem to have any desire to move higher, and for this index we will need to see the 11,700 area broken to provide the foundation for a fresh move upwards.

S&P 500 looking to confirm more upward momentum

A small pullback from the Friday highs has seen the index find support near 2285, but the bulls need to clear the all-time high above 2300 to confirm more upward momentum is on the way.

Below 2285 the price may also find support at 2267, where buyers mounted a firm defence last week. It needs a close below here to indicate a bigger pullback is underway.

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