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

The week has begun in strong form, with gains for indices across the board.

FTSE 100 surges from range support

The FTSE 100's bounce from the 7490 level/200-day simple moving average (SMA) of 7487 that we saw last week is still intact.

We need to see the price push on above the 50-day SMA (currently 7645), and then move back above 7700 to challenge recent highs around 7800. Even then the index is still within the 7500-7800 range until we get a daily close outside this.

Bargain hunters drive DAX higher

The DAX continues its recovery from the drubbing it received last week. We can see that 12,100 has held as support and now the 12,400 area comes in as a potential target.

From here, trendline resistance from the June highs comes into play around 12,700. A drop back would target support around 12,100, with a close below this suggesting a deeper retracement towards 11,700.

S&P 500 back on track to new highs

Having bounced from 2800, the S&P 500 has continued to gain, with 2864 and then 2877 as the next areas to watch. A move above the latter will mean the index is at new record highs.

A decline will target the 2800 area and then the 50-day SMA at 2792. Below this, any retracement that holds above 2700 is another higher low within the broader uptrend from the end of May.

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This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.

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