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

While equities have rallied off the lows, there is so far precious little upward progress.

FTSE 100 struggles to rally

There was a passable rebound from the lows for the FTSE 100, as dip buyers defended the 7200 area as they had back in the first half of September.

Early trading sees the index holding above this level, although there is scant sign of a rebound so far. If 7200 continues to hold then a move above 7280 and 7340 is possible, and a close below 7200 opens the way to 7127 and lower.

DAX tiptoes lower after surge

The DAX rebounded sharply from the lows down at 11,800, indicating significant buying pressure at these levels, but we have yet to see much follow through on this move.

If the area around 11,850 continues to hold then we look for a fresh move higher in due course, targeting 12,400, but a move above 12,500 and the highs from late September is needed to break the continuing sequence of lower highs in place so far this year.

S&P 500 holds support

Dips below 2877 continue to find buyers for the S&P 500, so a rally is still a possibility.

As with the other indices upside has been limited so far, but a move above 2890 targets 2940. Below 2870 rising trendline support comes into play around 2860.

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