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

After a great week for equities, the new week has begun on a downbeat note, with indices struggling following multi-week highs in Europe and a new all-time high for the S&P 500.

FTSE 100 clings on near three-week highs

A weaker pound put a rocket under the FTSE 100 on Friday, with the index leaping back above the 7490 level.

Dip buyers have rushed in this morning, so we will see if the index can close above 7490 and open the way to 7645, the high from late August, and then downtrend resistance from the all-time highs. A failure to break 7490 would suggest the possibility of a move back towards 7340 in the near term.

DAX falls after recording a possible lower high

The DAX surged to a three-week high on Friday, but fell back to finish below the 12,400 level and the 50-day simple moving average (SMA) at 12,418.

Rising trendline support would be found all the way back down towards 12,180. A close above Friday’s high and above 12,480 would break the inside trendline from the June lows, but the index still needs to clear 12,602 to break above the last lower high seen at the end of August.

S&P 500 edges back from recent highs

The S&P 500 has fallen back from the new all-time high touched on Friday, although futures are already off their lows.

A move below 2916 would suggest a move back towards 2877, which is support from the middle of the month. A fill of the overnight gap would suggest a fresh move higher is underway.

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