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

Indices have started the week on the front foot, showing no sign of wariness after the G7 meeting.

FTSE 100 finds the strength to bounce

Last week was one of those consolidation weeks for the FTSE 100, where trench warfare between the bulls and bears saw the index make little meaningful progress.

However, we have begun to see a push above the downtrend line from the May record high. A daily close above this line, and then further progress above 7730, would likely signal a fresh push higher is underway, targeting 7800 and 7903. A close below Friday’s low of 7638 is needed to create a more bearish picture.

DAX builds on a strong Friday session

The DAX posted a strong rebound on Friday, dipping to the low of the week before surging back to 12,800.

It looks as if further bullish momentum is being seen this morning, but we will need to see a close above the highs of last week around 12,900 to signal that more upside is on its way. Near-term targets are 12,954 and then 13,208. A close below 12,600 is needed to negate the bullish outlook.

S&P 500 girds itself for further gains

Last week saw the S&P 500 push through the highs of mid-May, taking out the 2740 resistance area. From here the index targets 2800 and then on to 2877. Dips towards 2750 found buyers late last week, so short-term bearish momentum would require a move below this.

However, the rising trendline from the May low would see support come into play around 2730, so the downside may be short-lived and instead be an opportunity to add to risk.

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