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

Last week ended on a sour note, but the DAX is already clawing back most of its losses.

Source: Bloomberg

FTSE 100 back to last week’s lows

The 7360 level is under threat once again, as FTSE 100 tests the lows seen a week ago.

Below here, 7294 and then 7260 are possible areas of support. A recovery above 7360 would suggest another attempt to break 7409, where the rally on Thursday and Friday ran out of steam.

Political woes drive down DAX

Early weakness for DAX on German political news was met by buying, as the bulls defend the lows of last week at 12,844.

If this continues to hold, and the index can move above 12,954, then the Thursday highs at 13,095 become the next area of resistance to watch. A loss of 12,844 could bring 12,678 into play very quickly.

S&P 500 looks to recover from Friday weakness

S&P 500's bounce from the Wednesday lows suffered a sharp reversal towards the end of last week.

A rebound needs to take out 2588 to open the way to the 2597 high. The initial areas to look out for will be 2565, and then 2553 and 2544.

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