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

Markets are holding on to gains this morning, after the bulls took charge last week.

Trader in the New York Stock Exchange
Source: Bloomberg

FTSE 100 continues to gain

Small gains this morning come after a very strong finish to last week. The price looks somewhat overextended to the upside, with a pullback likely to take the edge off the bullish momentum seen since Wednesday. As long as the price holds 7200, we should expect further upside.

The first areas to look for on the upside are 7314 and 7360, with dips welcomed as further buying opportunities.

DAX recovery set to continue

European markets have shown strength right out of the gate this morning, having pulled themselves up by the bootstraps last week and staged an impressive recovery.

The next resistance areas to watch are 11,770 and then 11,872, with 11,650 providing notable support at the end of last week. So long as this holds we can expect further upside.

S&P 500 looks set for a pullback

Last week saw record highs again for US markets, having formed a firm base of support around 2280. The price has moved away from the three key moving averages, so we may see a pullback materialise here, which is to be welcomed. Fresh buying could show at 2300.

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