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

With US markets out of the way for Presidents’ Day, European markets are struggling for direction.

FTSE 100 tries to break resistance

The rally has stalled at the 7300 zone for the FTSE 100, where gains petered out on 6-7 February.

If this holds as resistance then a push back to 7144 or 6919 is possible. A break of this range to the upside brings 7400 into play, and then on back towards 7800.

DAX targets more upside

The rally for the DAX has paused at 12,551, with 12,663 and 12,742 above this as resistance.

Further declines would see 12,051, 11,908 and then 11,692 tested. A break higher from 12,742 means that the price has broken back into the wide range that prevailed in late 2017, between 12,742 and 13,601.

S&P 500 pushes above key level

Last week saw the S&P 500 recover the 50-day simple moving average (SMA) of 2730, a symbolically important development, with the rebound from the lows firmly intact.

The index now looks to 2877, the previous record high. Support is now 2729, with further losses bringing 2628, 2596 and 2530 into play.

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