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

Indices have begun the week quietly, but with fresh highs last week, the advantage still lies with the buyers. 

German stock exchange
Source: Bloomberg

FTSE 100 stumbles at 7550

Last week saw the FTSE 100 repeatedly try to break above the 7550 zone of resistance (blue box), and then fail. It looks like further downside is in store for now, with the 7483 lows of last Thursday being the first area to look for support.

Below this, 7450 comes into play. A rally and close above 7560 would open the way to the peak at 7600.

DAX moves sideways

Fresh highs for DAX last week (near 13,100) have proven difficult to sustain, but the index has merely begun to consolidate at a slightly higher level, rather than seeing any significant downside.

The area from 12,881 to 12,954 should help provide support, while a drop below 12,881 would open the way to 12,678, the July high. A push above 13,100 puts us back in all-time high territory.

S&P 500 powers higher

The power of the S&P 500 was tested briefly last week, with a dip below the 50-period simple moving average (SMA) on the four-hour chart.

Since then, we have seen new highs. It needs a move below 2540 to even suggest a vaguely bearish outlook here. Unless the index moves below 2520, dips should remain buying opportunities. 

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