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

Stock markets have had a good, if modest week, thus far and now the US is back in earnest, we will see if this can continue. 

German stock exchange trader
Source: Bloomberg

FTSE 100 eyeing more gains

Having established a firm base down at 7300, the FTSE continues to move further away from the post-November rising trendline. Monday’s high at 7386 still needs to be broken, but so far it looks like we have further gains on the way, with a break of the downtrend line at 7450 the real sign that a new leg higher is underway.

Bears need to get the price back below 7300 to really suggest a further drop is likely.

DAX to climb higher

The bounce off the 100-day simple moving average (SMA) and the solid recovery back above 12,400 continue to suggest that this is the latest dip on the DAX.

As long as the price holds above these two points, we should expect a move higher, with 12,511 and 12,712 potential areas of resistance. A close below Friday’s low of 12,310 would be a significantly bearish development.

S&P 500 to continue recovery?

US markets return to normal today, so we will see if the ongoing recovery here can be sustained.

So far the S&P 500 continues to hold above 2420, and if this continues, we look for another test of 2450 and the all-time highs at 2454. It will not make sense to become too bearish unless we see a close below 2400. 

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