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

US markets finished out the week on a high, and Europe has taken this as a sign to attempt a bounce so far this morning.

FTSE 100 attempts to rebound after losses

There has been little consolation for the bulls over the past few days, but a recovery above the 7460 area for the FTSE 100 would be encouraging.

Ideally, a daily close above 7490 would provide further reassurance, suggesting a return to the range-bound trade of June and August. However, we have seen lower highs since May, so even a rebound towards 7700 would still be a possible selling opportunity. Further declines will target 7340.

DAX fights to hold 12,300

A renewed drop for the DAX would target 12,100, the crucial support from June and August. A break below this level would open the way to 11,700.

A rebound to 12,580 would bring the price back to the downtrend from the June highs, and hit the area of resistance around 12,600 that came into play last week. Longer term, a move above 12,600 opens the way to 12,900, trendline resistance from the January all-time highs.

S&P 500 still pressing higher

US markets continue their march higher, including the S&P 500 which is ignoring the turmoil in Europe.

Further declines towards 2800 would be possible buying opportunities, with fresh all-time highs only 13 points away. The longer-term bullish view persists unless the price breaks below 2800.

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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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