Levels to watch: FTSE 100, DAX and S&P 500
The week has seen the steady recovery continue, and it looks like there is more to come for indices.
FTSE 100 keeps pushing higher
Yesterday’s retreat towards 6850 provided a new higher low for buyers to enter, the FTSE 100 then duly pushed to a new higher high in the current move higher.
Having moved above the 50-day simple moving average (SMA) of 6905, the index is now looking to test trendline resistance from the August highs, which would suggest resistance around 7050-7060. The longer-term picture remains bearish unless this line is broken. However, for the time being pullbacks look to be buying opportunities.
DAX targets 11,000
Early weakness yesterday resulted in a higher low and then a higher high, as the DAX pushes on towards 11,000.
The 50-day SMA at 11,038 is the next target, while the support zone around 11,050 could also provide some resistance. The bullish view prevails in the short term unless we see a move below 10,800.
S&P 500 eyes up 2600
The steady move higher continues here, with the S&P 500 moving towards 2600 and continuing its recovery.
The next area of resistance to watch would be the 2624-2632 zone, marked by the lows of October and November, and the 50-day SMA. Immediate support is found around 2550.
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