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

Stock markets continue their recovery, buoyed by hopes of progress on the US-China trade standoff.

FTSE 100 supported by buyers

The spike higher earlier on yesterday was followed by an intraday pullback, but dip buyers came in around 6980, and the FTSE 100 then pushed higher.

An area of resistance over the past week has been 7060, so a move above this would be a bullish development. Both 7100 and then 7127 come into view. A move below 6980 is needed to suggest a more bearish view has developed.

DAX choppy, but uptrend intact

Attempts to hold above 11,400 are proving difficult to sustain for the DAX.

Yesterday’s pullback found support around 11,265, so if this holds again we may see another attempt to push higher. Below 11,250 the price heads back towards 11,100. A close above 11,400 would open the way to 11,700 and then the mid-October high at 11,830.

S&P 500 trend higher continues

A steady push higher here for the S&P 500 is still underway, with dip buyers entering around 2655 after some early weakness.

Above 2690 the price targets 2709, and then on to 2760. The bullish view remains intact unless we see a move back below 2650, which might suggest a return to the lows around 2630 is in the offing.

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