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

Indices are firmly off the lows of the week, but with so much data on the calendar today the rally has faltered.

FTSE 100 on the up once more

The FTSE 100 continues to claw its way higher, pushing above Tuesday’s high overnight.

Rising support from the March lows would come into play around 7580, while a push above 7650 brings the 7700 area into view, with 7706 as horizontal resistance and 7700 as declining trendline resistance. Moves above 7650 have been short-lived of late, so bulls need to step up soon to avoid a more bearish picture emerging.

DAX buyers struggle to find momentum

We saw the DAX move above 12,500 overnight, which is being reversed to some extent this morning, but overall the bullish picture remains intact.

Rising trendline support from the 2 July low would suggest that a move back towards 12,400 would find buyers, while possible targets to the upside include 12,562, then 12,954.

S&P 500 still stuck below 2740

While the S&P 500 has fought its way off the lows, gains continue to be constrained by the 2740 area.

Rallies into this zone have been pushed back as effectively as the dips towards 2690 have found buyers over the past two weeks. A close above 2750 is needed to secure the bulls’ hold on the index and start a move to 2790.

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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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