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Levels to watch: FTSE 100, DAX and S&P 500

Risk appetite was hit last night by the developments in Washington, although the shock has faded somewhat. 

FTSE 100’s rally halted for now

The FTSE 100 fell sharply overnight, but has managed to hold above the lows of the week so far, around 7050.

A bounce this morning has recovered lost ground, but there is much work to do to suggest a new rally is in the offing. A push above 7200 is the first step, but it leaves 7300 and 7400 as resistance. A turn lower heads to 6919.

DAX hopes to retake lost ground

Yesterday saw a turn lower for DAX in the evening, but the index has found support around 12,000, creating a higher low from the Monday bottom.

Further gains will target 12,280, and then 12,551. Still acting as potential support is 11,908 and then 11,692.

S&P 500 aims to recover from sudden drop

The S&P 500 continues to move higher, despite the reversal yesterday.

Having held 2650, it has now moved on and held the 100-day simple moving average (SMA) at 2677. From here, the next target would be 2750, and then on to 2800. 

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