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

While the US clocks up new records, European markets are under heavy pressure. 

FTSE 100 takes a tumble

The FTSE 100’s mid-November recovery seems a long time ago now, with a fresh leg lower taking the index to levels not seen for over two months.

Potential areas for buyers come in at 7294, and then 7260, but it will take a move back above to put a bullish outlook on the index, since intraday rallies such as those we saw this week have been so firmly sold. Below 7260, the September low at 7195 comes into play.

DAX suffers an early rout

For DAX too, the sellers are in control, driving the index back down towards the 12,954 area.

Below this, we look to the November low at 12,844 to provide further potential support, and then on down to 12,678. Two possible areas of resistance are 13,100, and then 13,200.

S&P 500 sails effortlessly higher

Nothing seems able to hold back US stocks at present, with both the S&P 500 and Dow Jones racing to record highs yesterday. Some degree of pullback would not be surprising, with the 2597 and 2580 areas being potential venues for support to materialise.

The index has not revisited the 50-day simple moving average (SMA), which is currently 2569, since the beginning of September, so a gentle return to this would not be surprising, and would also likely mark a new buying opportunity. 

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