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

European markets have started on the back foot this morning, although even now some dip buying is being seen. 

Wall Street
Source: Bloomberg

FTSE 100 losing last week’s gains

The FTSE has moved swiftly lower this morning, surrendering the gains made over the past week or so. It is too early to suggest that a bigger correction is at hand, since we have major support at 7450 and then 7385 to break.

Having dropped so quickly, a bounce back is possible in the short term, but it will need to hold above the 7500 area to avoid giving the impression that further weakness is on the way.

DAX resists a move higher

The DAX continues to range between 12,500 and 12,700. So far it shows no desire to move higher, with only a daily close above 12,700 sufficient to indicate the indecision of the past two weeks has been resolved in favour of the bulls.

Meanwhile, we wait to see if a push back to 12,700 brings out the sellers once again. A drop to the 50-day simple moving average (SMA) at 12,394 is still a possibility, and this has the added attraction of being near the 12,408 level that was the previous all-time high. 

S&P 500 not bothered by European losses

S&P 500 seems to be only slightly affected by the losses in Europe. Bulls should only become more concerned if we slip below 2400, since this might suggest a move to the 50-day SMA at 2373.

Already some dip buyers are coming in to defend the 2410 area. A push from here would take us back to the 2418 area and the current all-time high. 

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