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

The overall picture for indices is still bullish, although a stronger pound is making life more difficult for the FTSE 100. 

FTSE 100 tries to recover from difficult Tuesday

The price action so far this week has not been particularly bullish for the FTSE 100. While it remains above last week’s lows, the push higher on Monday was reversed and followed by losses yesterday, creating a lower high at 7772.

Thus the descending trendline created means that we need to see a push above 7730 to break both this trendline resistance and horizontal resistance. Support is still provided by 7670, but if this is broken then last week’s lows at 7586 come into play. 

DAX bulls still in charge

The DAX broke the descending trendline from the recent highs yesterday, and then in classic fashion retested it from above. The bounce has been relatively short-lived however, with the index finding it tough to move above 12,800.

Nonetheless, it is holding 12,742 as near-term support, with 12,929 as the next target in a move back above 12,800. A move back below 12,720 would create a more bearish outlook.

S&P 500 makes workmanlike progress

While the S&P 500 has not matched the soaring achievements of the Nasdaq lately, it continues to push higher, solidifying its hold above 2740.

The next area of resistance to watch comes in at 2790-2800. A rising trendline from the April low could see support come into the picture around 2720.

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