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

Indices recovered yesterday, and are looking to add to gains as dip buyers come in.

Source: Bloomberg

FTSE 100 constrained for now below 7200

The FTSE 100 recovered strongly from the plummet on Monday, surging back towards 7300.

It has fallen back since then, but if it can remain above 7100 then the chance of further gains is intact. Above 7195, then 7260 and 7294 levels come into play, while below 7100, Monday’s low at 6919 is the next target.

DAX moves higher in wake of huge rebound

In common with other markets, the price for DAX rebounded, with a trough-to-peak gain of almost 1000 points.

Given this move, a pullback is not surprising, but potential support is likely around 12,310 and 12,387. If this holds then a return to 12,678 and a push higher is possible.

S&P 500 pauses after its surge

A steady rally from Tuesday’s overnight lows has seen the S&P 500 gain over 100 points.

While it has drifted lower, it could find support at the short-term rising trendline from the week’s lows, which could prompt a rebound towards 2702 and higher. The 50-day simple moving average (SMA) at 2725 is another area to watch on the upside.

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