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

European indices are faltering this morning, but the FTSE 100 has managed to break above a key trendline. 

German stock exchange
Source: Bloomberg

FTSE 100 in a bullish mode

The FTSE 100 has begun the day above the descending trendline, potentially signaling a breakout. Dips back towards the trendline have been met by buying, so the next target to the upside is 7450. Above here 7533 and 7600 come into play.

As before, it needs a daily close below 7300 to negate the bullish outlook.

DAX can’t move past the descending trendline

This DAX remains constrained by its descending trendline, with attempts to break it over the past two days resulting in failure.

Now the price is turning lower from 12,200, with 12,032 and 11,921 as potential support. If 11,900 is broken then a bigger fall to the June 2016 rising trendline comes into play.

S&P 500 on the downside

The sequence of lower highs remains intact, with the S&P 500 continuing to drift lower. Below 2435, the index will target 2415.

A daily close above 2455 would be needed to put a more bullish spin on the outlook. 

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