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

Indices have recovered, but there is more work for the bulls to do.

FTSE 100 moves to top of range

The FTSE 100 has been stuck in a range from 6900 to 7100 since its steep drop, and is now moving towards the top end of this range.

A daily close above 7100 would likely ignite a move towards 7220. A failure to break higher would suggest a return to the 6900 support area.

DAX tries to rally again

The DAX has also bounced from the support zone around 11,450. The first obstacle is the 11,850 high from last week.

A close above this would provide bullish momentum, and bring 11,900 and 12,200 into view. A daily close below 11,420 is required to open the way to fresh downside.

S&P 500 finds buyers above support

The week ended on a poor note for the S&P 500, but there has been fresh buying this morning.

Any rally needs to break 2820 to mark a bullish development, while a move back below 2740 would raise the prospect of a renewed drop to the October lows around 2710.

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