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

US markets finished out the week on a high, and Europe has taken this as a sign to attempt a bounce so far this morning.

FTSE 100 attempts to rebound after losses

There has been little consolation for the bulls over the past few days, but a recovery above the 7460 area for the FTSE 100 would be encouraging.

Ideally, a daily close above 7490 would provide further reassurance, suggesting a return to the range-bound trade of June and August. However, we have seen lower highs since May, so even a rebound towards 7700 would still be a possible selling opportunity. Further declines will target 7340.

DAX fights to hold 12,300

A renewed drop for the DAX would target 12,100, the crucial support from June and August. A break below this level would open the way to 11,700.

A rebound to 12,580 would bring the price back to the downtrend from the June highs, and hit the area of resistance around 12,600 that came into play last week. Longer term, a move above 12,600 opens the way to 12,900, trendline resistance from the January all-time highs.

S&P 500 still pressing higher

US markets continue their march higher, including the S&P 500 which is ignoring the turmoil in Europe.

Further declines towards 2800 would be possible buying opportunities, with fresh all-time highs only 13 points away. The longer-term bullish view persists unless the price breaks below 2800.

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