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

Indices have maintained their bullish outlook as a new week gets underway.

FTSE 100 hitting highs

Another good day on Friday saw the FTSE 100 hit its highest level since the beginning of February. Further gains from here will target 7796, the highs from January.

Buying pressure developed around the 7340 area last week, when a short-lived consolidation was resolved in favour of a push higher. Sustained price action below 7300 would be needed to indicate that the bulls are no longer in control.

Will buyers push the DAX higher?

Last week saw the DAX dip down towards 12,400 and below, but the buyers came in to prevent further losses. Now we wait to see if the price can clear the 12,675 area, putting it firmly above the highs of April.

The price action of last week suggests that sellers will have a tough time breaking below 12,300, with upside targets now at 12,742, 12,954 and higher.

S&P 500 looking to bounce

Recent weakness saw the S&P 500 find support once again at the still-rising 200-day simple moving average (SMA) of 2617.

A bounce from here raises the prospect of a test of the downtrend line from the January highs. A move above 2720 would mark a break of that line. A close below 2615 is needed to reverse the still-bullish outlook here.

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