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

Stock markets have enjoyed a good 48 hours, putting a more bullish outlook on things.

FTSE 100 builds on gains of yesterday

Yesterday saw another strong day of gains for the FTSE 100, with the index having rallied by around 2% since the lows of Wednesday.

While there is some early weakness this morning, the steady recovery goes on. It would need a move below 7120 to create a short-term lower low and break the move upward from the 7070 level that has been in place this week. Further gains will target 7300 and then 7400.

DAX recovers strongly this week

A strong trend of higher lows and higher highs over the past week has seen the DAX recover much lost ground.

Further upward moves will encounter the 12,551 – 12,742 zone of resistance. Any pullback that holds above 12,181 remains a higher low and thus a possible buying opportunity.

S&P 500 reaches for late February high

The S&P 500 has also had a good week, Tuesday’s drop notwithstanding.

The price has managed to break above the 2730 area that marked the high over the previous week, so now the late February high at 2790 comes into play. Rising trendline support could be found around 2720, with 2682 below this.

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