FTSE 100, DAX, S&P 500 all rally for healthy gains
The gains in equity markets continue, as investors put a difficult May behind them, with the FTSE 100 and S&P 500 in particularly strong form.
FTSE 100 enjoys a good week
The FTSE 100 has put in a strong performance over the past four sessions, rebounding from the low below 7100.
Wednesday saw a drop from 7260 to 7200, and this pullback provided a good entry point for longs. Fresh gains above 7260 head towards 7370, and if this is retaken then 7530 comes into view. A move below 7200 dents the bullish thesis, but a move back below 7140 is needed to suggest that the sellers are back in control.
DAX encounters near-term resistance
Since racing higher at the beginning of the week, the DAX has stalled around the 50-day simple moving average (SMA) of 12,056.
A break higher from here targets 12,120 and then 12,300. Short-term support at 11,950 has been seen over the past two days; if this breaks then 11,700 is the next area of possible support.
S&P 500 continues to rally
The price of the S&P 500 has pushed to a one week high, breaking trendline resistance from the May record high.
A drop back to 2800 in yesterday’s session provided a retest of the trendline from above, and with this successfully accomplished the advantage appears to lie with the bulls. Further gains target 2870, and then 2890, and with this cleared the way would lie open for a push to 2960. A move back below 2790 would be needed to suggest that the run higher is under threat.
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