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

There seems to be a sense of disappointment in indices this morning as markets turn lower in the wake of Trump’s tax announcement.

Source: Bloomberg

FTSE may push up after the ECB meeting

Despite a late push yesterday towards 7300 the FTSE continues to bump along just above 7250, with no sign yet that more buying momentum is coming through. This may change after the European Central Bank (ECB) meeting, so we wait to see if the index can push above 7300 towards 7360.

A drop below 7250 would first target 7194, the low way back on 24 February, and then down to 7090. A loss of momentum on the daily chart would suggest that we will see a continuation of the steady pullback from mid-March, with the spike higher yesterday marking the latest lower high.

DAX pullback remains shallow

The pullback from the all-time high remains relatively shallow, and could yet simply be a pause for another move higher. The DAX has shown no desire to move below the previous record high of 12,408, so this remains as support. A break higher would need to see a move above the Tuesday high at 12,516.

Support lies at 12,200 and then 11,893, but for bears, only a firm move below 11,945 would signal a big change of direction on the daily chart. 

S&P 500 awaiting for the price confirmation

The S&P 500 did not quite see 2400 yesterday, but the finish at the bottom of the range for the session does perhaps spell the end of the bounce.

While we need to wait for the price to confirm, a move below 2384 would create a new lower low on the hourly chart, with the overnight move up potentially creating a new lower high. On the daily chart a move below 2370 would make the outlook seem more bearish, while bulls could regain control if they can push above 2400 and into new all-time high territory.

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