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

The bullish move continues, with indices still in rally mode.

FTSE 100 approaches key area

The slow grind higher continues for the FTSE 100, with the key 7300 area now in sight. This was vital support back in December, when the index slowly bottomed before rallying.

Last week saw it fail to push on above here, so we watch for a close above this level as a signal that a push back to 7450 and higher is in play. A turn lower could find support at 7144, then 7000 and 6919.

DAX faces resistance

European markets have still to break meaningfully higher, and for DAX near-term struggle lies at 12,551, 12,664 and then 12,742.

Possible areas of support come in at 12,051, 11,908 and then 11,692. The sequence of higher lows from the 6 February low remains intact, so for the moment the buyers remain in charge.

S&P 500 closed above previous high

The bulls can be pleased with their work, which was crowned with a close above last week’s high at 2728 for the S&P 500, and the successful recovery of the 50-day simple moving average (SMA) at 2729.

Now, 2877 (the previous all-time high) is back in their sights. A move back below 2728 would be a worrying sign, but would likely suggest consolidation rather than a sell-off. Possible areas of support come in at 2628, 2596 and then 2530. 

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