FTSE 100, DAX and S&P 500 all looking to build on gains
Last week’s rebound helped to recover lost ground from late July, and this morning's indices are still looking to keep pushing higher.
FTSE 100 aiming to break through 7300
Last week saw a rebound across equity markets, and the FTSE 100 was no exception.
After the leap higher on Tuesday, gains slowed, but the overall bounce remains intact. Gains above 7300 proved to be a step too far last week, so a push through here is the first requirement. From there 7500 and 7550 are the next levels to watch. A break below 7200 negates the more positive view established a week ago.
DAX recovery enters a new week
A brief sojourn below the 200-day simple moving average (SMA) of 11,651 was followed up by a bounce for the DAX.
However, gains stalled in the second half of the week, below 11,900, but higher lows have been established over the previous few sessions. Trendline support from the August low would come in around 11,700 so a move below this and then back down below the 200-day SMA would revive the bearish view. Above 11,900 the price heads towards 12,050, trendline resistance from the late-July peak.
S&P 500 rally still in progress
The v-shaped recovery last week has encountered resistance at 2940 for the S&P 500, but the pullback from here to 2900 established a higher low and found buyers.
Now the price must push on back above 2900 to carve out a higher high, and a move above the 50-day SMA at 2943 would also help to buff up the bullish impression. A failure to hold 2900 puts the index into a more neutral mode, while a drop back below 2870 restates the bearish case.
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