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

Indices wobbled yesterday but are doing their best to recover this morning.

Source: Bloomberg

FTSE 100 recovers overnight

We saw a sharp retreat from all-time highs near 7800, but the FTSE 100 has found buyers around 7720.

It has pushed higher overnight, with an oversold stochastic on the four-hour chart providing an entry point. Initial resistance is possible around 7796, the high from the beginning of the week. Below 7705, the price may well head towards 7600. 

DAX stuck in short-term downtrend

DAX has seen lower highs and lower lows since its recent high on 9 January. We would need to see a break above 13,350 to suggest this downtrend has run its course.

A rally that holds below this remains a possible short-term selling opportunity. Below Tuesday’s low of 13,314 the index may target 13,095, and then on to 12,954.

S&P 500 dip seems to be over

S&P 500 dropped back from all-time highs, but after dipping below the 100-hour simple moving average (SMA), of 2780, it has recovered. Yesterday’s high at 2807 is in view once again.

Meanwhile, a turn lower targets 2770 and then on to 2759. For the time being it looks like the dip buyers are in control. 

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