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

The rally continues, with US markets in particular roaring ahead.

Stock market
Source: Bloomberg

FTSE 100 returns to the 7450 resistance zone

The bounce for the FTSE 100 has carried it back to the 7450 resistance zone. The last two bounces off 7300 faltered here, so the index has reached a crucial point. A daily close above here opens the way to 7533, and then on to the all-time high at 7600.

A turn lower from 7450 leaves the current 7300-7450 range intact, so some short positions could be considered, with a target of 7300.

DAX in downtrend since gains

Three days of gains still leave the DAX in a downtrend from the June high. A new high would need a move above 12,200 and even then a close above 12,310 is needed to really show that the buyers are back in charge.

A turn lower from below 12,200 puts the downtrend back in force, with a target of 11,900 in the first instance.

S&P 500 negation may lead to gains

If the S&P 500 pushes above 2475 then all that is left on the upside will be 2483 and then 2491. A turn lower from here could find support at 2454.

The push lower since the August high has been negated, so it looks like more gains are the order of the day, unless we see the price move back below 2440. 

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