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

The week has begun in quiet fashion, but the bulls remain in charge after the recovery from last week’s brief wobble.

Source: Bloomberg

FTSE 100 regains ground from last week

FTSE 100 has seen a progressive recovery from the lows of last week, although the index has yet to recover Friday’s early high of 7517.

A move above here would set the bulls’ minds at ease, while a drop below 7420 would be a worrying development, as the index breaches the lower low created on Wednesday. Possible trendline support comes into play around 7460.

DAX opens quietly

DAX continues to hold the gains of last week, with a relatively quiet open providing little in the way of clues. The previous high at 13,095 is the first area to look for support.

The 13,251 high of last week is the only area of resistance before new all-time highs are reached. A pullback to the 12,881-12,954 area should encounter significant support. 

S&P 500 maintains support level

Two attempts over the past two weeks by S&P 500 to break below 2550 have been firmly rebuffed, so for now this remains the support level to watch.

Continuing price action above this level is firmly bullish. We should expect to see the progression of new higher highs and higher lows continue.

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