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

While US dip buyers lifted the index off the lows, further gains have not been forthcoming this morning.

FTSE 100 holds support but little else

While the FTSE 100 rebounded from the 6920 area yesterday, as it did two weeks ago, there has so far been no bullish momentum to maintain the advance.

Dips into the zone from 6920 to 6990 have been met by buying, so a daily close beneath the low is needed to suggest more weakness ahead. Over the past week, 7030 and 7130 have been areas where buying has run out of steam, so a push above here is needed to suggest the buyers are back in charge.

DAX rally ebbs away

The rally from the lows took the DAX back to previous support at 11,426, but this area then acted as resistance and the price fell back.

Further declines will target the Tuesday low around 11,225, and from there long-term trendline support around 11,050 comes into play.

S&P 500 bounce fades

Any victory lap by the bulls may be premature, since while they were able to rally the S&P 500 off its lows, it has recorded another lower high in the downtrend from the 17 October high.

A push above 2754 is needed to break the downtrend line, with 2779, 2802 and then 2820 as upside targets. A fresh drop brings the vital 2700 area into play.

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