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

The FTSE took a knock yesterday, partly thanks to a drop in oil, while eurozone markets are keenly awaiting the ECB meeting today. 

Data trader
Source: Bloomberg

FTSE – will it bounce back to 7500?

The FTSE took a swift drop yesterday, potentially bringing an end to the post-April rally.

Having pushed below the 7500 zone that acted as support over the past few days, we now need to see how the price reacts. A bounce that fails to get back above 7500 should be treated as a selling opportunity, while one that does recover this level would mean we are still in a consolidation period. Downside targets lie around 7409 and 7372. 

DAX still waiting for Draghi’s decision

European markets have spent the week waiting for Mario Draghi’s appearance today. So far the downside has been limited in the wake of Tuesday’s sudden drop, with the DAX showing a marked reluctance to push below 12,650.

The next area to watch on the downside is 12,517 if 12,650 gives way, with 12,408 below this. Yesterday’s bounce faded at 12,750 so this is where the bulls need to step up in the short term.

S&P 500 eyeing new record highs

Yet another small dip yesterday was bought on the S&P 500, so now we look to see if the price can push back to 2440 and maintain forward momentum.

A breakout above this level puts us in new record high territory. It needs a move below 2420 to become more negative in the short term. 

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